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Question 19 (1 point) all If, in the face of a large budget deficit, a national government decides to cut spending and taxes by roughly the same amount, the effect on output and interest rates will most likely be: 0 a) decreases in both interest rates and GDP 0 bl to increase interest rates and decrease GDP 0 C) to decrease interest rates and increase GDP 0 d) to leave interest rates and GDP unchanged 0 e) increases in both interest rates and GDP Question 22 (1 point) all Suppose two countries are each capable of individually producing two given commodities. Instead, each specializes by producing the commodity for which it has a comparative advantage and then trades with the other country. Which of the following is most likely to result? 0 a) the two countries will become more independent of each other 0 bl unemployment will increase in one country and decrease in the other 0 c) there will be more efficient production in one country but less efficient production in the other 0 dl both countries will be producing their commodity inefficiently 0 e) both countries will become better off Question 25 (1 point) Listen If Canada's change in official reserves in a given year is negative, then Canada has a: a) current account deficit O b) balance of payments deficit O c) capital account deficit O d) balance of payments surplus O e) capital account surplus