An increase in the government budget deficit ?

A. Has no impact on the real interest rate and fails to crowed out investment
B. Decreases the real interest rate and crowds out investment
C. None of these answers
D. Increases the real interest rate and crowds out investment

An increasing in Europe’s taste for UK produced Hondas would cause the pound to ?

A. Depreciate and would increase uk net exports
B. Appreciate and would increase uk net exports
C. Depreciate and would decrease uk net exports
D. Appreciate, but the total value of uk net export stays the same

If the EU imposes a quota on the importing of clothing produced in China, so reducing UK imports of clothing Which of the following is true regarding the market for foreign currency exchange ?

A. The demand for pounds decreases and the pound depreciates
B. The supply of pounds increases, and the pound depreciates
C. The supply of pounds decreases, and the pound appreciates
D. The demand for pounds increases and the pound appreciates

An increase in Pakistan’s private saving ?

A. Increase pakistan’s net exports and pakistan’s net capital outflow the same amount
B. Increase pakistan’s net exports and decrease pakistan’s net capital outflow
C. Decreases pakistan’s net exports and pakistan’s net capital outflow the same amount
D. Decrease pakistan’s net exports and increase pakistan’s net capital outflow

An example of a trade policy is ?

A. A tariff on sugar
B. All are examples of trade policy
C. Capital flight because it increases a country’s net exports
D. An increase in the government budget deficit because it reduces a country’s net exports

Suppose, due to political instability, Russians suddenly choose to purchase UK assets as opposed to Russian assets Which of the following statements is true regarding the value of the pound and UK net exports ?

A. The pound appreciates, and uk net exports rise
B. The pound appreciates, and uk net exports fall
C. The pound depreciates, and uk net exports rise
D. The pound depreciates, and uk net exports fall

An increase in the Pakistan’s government budget deficit ?

A. Increase pakistan’s net exports and decrease pakistan’s net capital outflow
B. Decreases pakistan’s net exports and pakistan’s net capital outflow the pakistan’s same amount
C. Increase pakistan’s net exports and pakistan’s net capital outflow the same amount
D. Decreases pakistan’s net exports and increase pakistan’s net capital outflow

The Phrase “twin deficits” refers to ?

A. A country’s trade deficit and its government budget deficit
B. The fact that if a country has a trade deficit, its trading partners must also have trade deficits
C. The equality of a country’s saving deficit and its investment deficit
D. A country’s trade deficit and its net capital outflow deficit

Which of the following statements regarding the market for foreign currency exchange is true ?

A. An increase in pakistan’s net exports decreases the supply of rupees and the rupees depreciates
B. An increase in pakistan’s net exports increase the demand for rupees and the rupees appreciates
C. An increase in pakistan’s net exports increases the supply of rupees and the rupees depreciates
D. An increase in pakistan’s net exports decrease the demand for rupees and the rupees appreciates

If the EU imposes a quota on the importing of clothing produced in China, so reducing UK imports of clothing, which of the following is true regarding UK net exports ?

A. Net exports will rise
B. None of these answers
C. Net exports will fall
D. Net exports will remain unchanged