What change in the budget deficit will cause the trade deficit to increase, all else the same? A) increase the budget deficit B) decrease the budget deficit C) eliminiting the budget deficit D) balancing the budget

What change in the budget deficit will cause the trade deficit to increase, all else the same? A) increase the budget deficit B) decrease the budget deficit C) eliminiting the budget deficit D) balancing the budget

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter31: The Impacts Of Government Borrowing

Section: Chapter Questions

Problem 25P: Sketch a diagram of how a budget deficit causes a trade deficit. (Hint: Begin with what will happen...

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Question

What change in the budget deficit will
cause the trade deficit to increase, all else
the same?
A) increase the budget deficit
B) decrease the budget deficit
C) eliminiting the budget deficit
D) balancing the budget

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