Which of the following could cause a country's real interest rate to increase and its currency to appreciate? 

A Deficit spending

B An increase in taxes

C A decrease in business investment in capital equipment

D A decrease in spending

E A decrease in consumer spending

Question 2

If the real interest rate is 5 percent in the United States and 8 percent in Canada, what will happen over time to the current and financial/capital accounts in the United States?

A The financial/capital account will have a deficit, and the current account will remain constant.

B The financial/capital account will remain constant, and the current account will have a surplus.

C The financial/capital account will have a surplus, and the current account will have a deficit.

D The financial/capital account will have a deficit, and the current account will have a surplus.

E Neither the current nor the financial/capital account will change.

Question 3

A central bank seeking to appreciate its currency could do which of the following?

A Increase interest rates

B Impose a tariff

C Invest in another country's currency

D Buy another country's government bonds

E Raise income taxes

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Use the central limit theorem to find the mean and standard error of the mean of the indicated sampling distribution. Then sketch a graph of the sampling distribution. The per capita consumption of red meat by people in a country in a recent year was normally distributed, with a mean of 107 pounds and a standard deviation of 38.4 pounds. Random samples of size 15 are drawn from this population and the mean of each sample is determined. HX = - = (Round to three decimal places as needed.) Sketch a graph of the sampling distribution. Choose the correct graph below. A. -97.1 9.9 116.9 B. C. D. -311.1 9.9 330.9 77.3 107 136.7 87.2 107 126.8 Use the central limit theorem to find the mean and standard error of the mean of the indicated sampling distribution. Then sketch a graph of the sampling distribution. The per capita consumption of red meat by people in a country in a recent year was normally distributed, with a mean of 107 pounds and a standard deviation of 38.4 pounds. Random samples of size 15 are drawn from this population and the mean of each sample is determined. HX = - = (Round to three decimal places as needed.) Sketch a graph of the sampling distribution. Choose the correct graph below. A. -97.1 9.9 116.9 B. C. D. -311.1 9.9 330.9 77.3 107 136.7 87.2 107 126.8

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1 The correct answer is A Deficit spending Deficit spending can lead to an increase in the coun... View the full answer