Which of the Following Is Not an Affect of a Lower

question 102

Multiple Choice

Which of the following is not an affect of a lower federal government budget deficit?

• A) a higher real interest rate
• B) a depreciation of the currency
• C) a rise in exports
• D) a rise in the price of foreign inputs

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Definitions:

Discount Retailers

Stores that offer products at lower prices by accepting lower margins in return for a high sales volume.

Arbitrage

The practice of taking advantage of price differences between markets to make a profit.

Vertical Contracts

Agreements between firms at different levels in the supply chain (e.g., manufacturer and retailer) to govern the terms of sale or purchase.

Costly Activities

Actions or processes that require a significant amount of resources, such as time, money, or effort.