AP 宏觀真題詳解
學生問: FOR Question (C)
(AP Macro 宏觀真題詳解):
(AP Macro 宏觀真題詳解):
(1) Since in (a), Gov got budget deficit situation, hence decreasing Gov's saving and shifting Investment supply curve to the left in Loanable Fund Market and resulting the increase of real interest rate.
(2) Based on (1), capital will flow in country A, increasing the currency demand for dollar and appreciating the dollar.
