A moderate increase in a budget deficit that leads to a _____________________ is not necessarily a cause for concern.
A. combination of less foreign capital and banks that are bankrupt
B. moderate increase in a trade deficit and a moderate appreciation of the exchange rate
C. a series of large budget deficits
D. shift in aggregate demand so far to the right that it causes high inflation
Answer:B
A moderate increase in a budget deficit that leads to a _____________________ is not necessarily a cause for concern.
A. combination of less foreign capital and banks that are bankrupt B. moderate increase in a trade deficit and a moderate appreciation of the exchange rate C. a series of large budget deficits D. shift in aggregate demand so far to the right that it causes high inflation
Explanation: Type: Multiple Choice