mework(Ch 32) REAL EXCHANGE RATE 20 Market for Foreign-Currency Exchange -15 2 + Effects of a Budget Deficit -5 -10 10 D QUANTITY OF DOLLARS (Billions) Demand 5 15 20 Summarize the effects of a budget deficit by filling in the following table. Initial Supply Supply with Deficit Real Interest Rate Real Exchange Rate Trade Balance.

mework(Ch 32) REAL EXCHANGE RATE 20 Market for Foreign-Currency Exchange -15 2 + Effects of a Budget Deficit -5 -10 10 D QUANTITY OF DOLLARS (Billions) Demand 5 15 20 Summarize the effects of a budget deficit by filling in the following table. Initial Supply Supply with Deficit Real Interest Rate Real Exchange Rate Trade Balance.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

SEIYUANE THEMIRE
mework(Ch 32)
REAL EXCHANGE RATE
20
Market for Foreign-Currency Exchange
-15
10
0
-5
+
-10
0
10
QUANTITY OF DOLLARS (Billions).
Effects of a Budget Deficit
Demand
5
15
20
Summarize the effects of a budget deficit by filling in the following table.
Initial Supply
Supply with Deficit
Real Interest Rate Real Exchange Rate Trade Balance.

perating under a balanced government budget.
Real Interest Rate
(Percent)
2
National Saving
(Billions of dollars)
65
60
55
50
45
40
Domestic Investment
(Billions of dollars)
25
35
45
55
65
75
Net Capital Outflow
(Billions of dollars)
-20
-15
-10
5
0
5

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