Domestic Saving, Supply Demand Supply Demand ReadSpeaker 10 20 30 40 50 QUANTITY OF LOANABLE FUNDS As än open economy, this change in interest rate causes the net capital which in turn causes Ouvert's net The increase in deficit causes the interest rate in Ouvert to inflow to Ouvert to . This change in net capital inflow causes Ouvert's currency to exports to the impact on aggregate demand of the expansionary fiscal policy. The change in net exports caused by the tax cut 422 PM 90F AQI 107 7/25/2021 REAL INTEREST RATE 3)

Over the past two years the world has been dealing with the global pandemic. To keep theeconomy going, the government of Jamaica increased their level of government spending.a. Using the IS-LM model, explain the impact of the increased government spending on interestand income.b. Discuss THREE positive impacts that borrowing to finance government spending could haveon a Caribbean country of your choice.

.  The government has proposed Rs1,289 billion for the defence budget for the year 2020-21, 5.1% more compared to last year’s revised defence estimates of Rs1,227 billion for the year 2019-20. If Government cut defence Budget, what happens to saving, investment, the trade balance, the interest rate, inflation rate and the exchange rate? And similarly, Government decreases the interest rate due to COVID-19 so explain what impact on consumption, investment and interest rate. Justify the answer with your own word and examples.

A net exports deficit will become a surplus if​ _______.   A. the country appreciates its currency   B. the government budget deficit is turned into a surplus and the private sector has a surplus   C. private saving and government saving exceed private investment   D. the private sector surplus adjusts to equal the government sector deficit

8:12 O YTB Output, Y Output, Y 3 A' ZZ' B Trade deficit NX ZZ • Summary: - An increase in domestic demand leads to an increase in domestic output but leads also to a deterioration of the trade balance. An increase in foreign demand leads to an increase in domestic output and an improvement in the trade balance. Implications: - Shocks to demand in one country affect all other countries. Economic interactions complicate the task of policy makers. Policy coordination is not so easy to achieve. 1 Q 4 ...

One of the problems with a growing national debt is the growing interest payments which must be paid on that debt. ture or false

In periods of rapid U.S. growth, the rapid growth usually adds to large U.S. trade deficits by: O increasing U.S. national income, which increased U.S. imports. O reducing real interest rates in the United States. O increasing U.S. national income, which decreased U.S. exports. O increasing U.S. tax revenues and reducing the Federal budget deficit.

g. Use a figure to explain the potential effectiveness of fiscal policy to spur on the economy under a fixed exchange rate. Diagram is given below, to answer this question consult the textbook chapter-7] 1 OUP, Y

59 please quikcly  thanks ! If the Bank of Canada raises its target for the overnight interest rate from 3 percent to 3.25 percent while interest rates in other countries do not change, the result is _____ of financial capital, _____ in demand for Canadian dollars and _____ of the Canadian dollar. a.An outflow; an increase; an appreciation. b.An inflow; an increase; a depreciation. c.An inflow; an increase; an appreciation. d.An outflow; a decrease; a depreciation. e.An inflow; a decrease; a depreciation.

Explain the contractionary fiscal policy in the short run and long run (ignoring exchange rate and capital flows).