Thank you in advance I would really appriciate it QUESTION 3

Thank you in advance! I would really appriciate it.

QUESTION 36 An appreciation of the U.S. dollar will likely cause U.S. net exports to and U.S. real GDP to decrease: decrease increase; decrease increase; increase decrease: increase QUESTION 37 When the federal government runs a budget deficit it borrows money from the public by issuing bonds. interest payments on the existing debt decrease the US Mint prints the money to pay the deficit. the total value of the national debt decreases. QUESTION 38 Replacing the personal income tax with a consumption tax would: be more favorable to be the same as imposing a \"f require higher tax rates in order to keep government revenues unchanged allow for lower tax rates for everyone corporations than to households. lat tax.\"

Solution

a) Appreciation of the US dollar will decrease the exports and increase the imports in the economy with falling exports the GDP will decrease because exports form part of the aggregate demand. The answer is \"A\", Decrease and Decrease.

b) \"A\"

When the government increases the deficit they borrow from the public in form of bonds. The answer is \"A\".

c) \"Require a higher tax rate to keep the revenue unchanged\" Income can be saved or consumed. Even the saving is covered under the taxes when income is charged. When consumption is charged it is only a limited amount of income which doesn\'t include saving.

d) Buy government bonds, it will increase the money supply and decrease the interest rates in the market.

e) \"All the statements are correct. \"