CHOOSE THE ANSWER FROM HIGHLIGHTED BELOW: 1aGiven the textbook’s definitions of
ID: 1200539 • Letter: C
Question
CHOOSE THE ANSWER FROM HIGHLIGHTED BELOW:
1aGiven the textbook’s definitions of variables reflecting components of the national income accounts, government savings equals
Y - T - G
T - CA
Y + CA
Y - T - C + CA
T - G
1b.
When a central bank increases interest rates, investors will
invest more in the debt of the country but the value of the country's currency will be likely unchanged.
invest less in the debt of the country and the value of the country's currency will be likely rise.
invest less in the debt of the country but the value of the country's currency will be likely unchanged.
invest more in the debt of the country and the value of the currency of that country will likely rise.
invest less in the debt of the country since higher interest rates typically decrease investment in general.
Explanation / Answer
1a. T - G
1b. invest more in the debt of the country and the value of the currency of that country will likely rise.