Everything Else Held Constant,when the Government Has Higher Budget Deficits

question 134

Multiple Choice

Everything else held constant,when the government has higher budget deficits

• A)the demand curve for bonds shifts to the left and the interest rate rises.
• B)the demand curve for bonds shifts to the left and the interest rate falls.
• C)the supply curve for bonds shifts to the right and the interest rate falls.
• D)the supply curve for bonds shifts to the right and the interest rate rises.

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Definitions:

Laissez Faire

An economic philosophy advocating minimal governmental intervention in the market and the private sector.

Capitalism

An economic system characterized by private or corporate ownership of goods and services, intended for profit.

Justice Theorist

An individual who studies or develops concepts related to justice, focusing on its application in society, law, or morality.

Society's Benefits

The advantages or positive outcomes that accrue to the general public or community from certain actions, policies, or programs.