Question

If the economy is operating below the full-employment level of output, what would be the effect on the trade balance of an increase in the government’s budget deficit?

An increase in the budget deficit causes a decrease in the trade deficit.
An increase in the budget deficit causes an increase in the trade deficit.
An increase in the budget deficit causes an increase in the trade surplus.
There is no relationship between the budget deficit and the trade deficit.

Answer 1

I don't think there should be any relationship between two deficits; trade and budget. So number 4

Answer 2

are you getting them correct?

Answer 3

i have not graded the worksheet yet

Answer 4

i will when they all are done

Answer 5

nervous

Answer 6

ha....i hope u are doing good..:)