What Would an Increase in the Budget Deficit Most Likely

question 138

Multiple Choice

What would an increase in the budget deficit most likely cause?

• A) a shortage of loanable funds at the original interest rate, which would lead to falling interest rates
• B) a surplus of loanable funds at the original interest rate, which would lead to rising interest rates
• C) a shortage of loanable funds at the original interest rate, which would lead to rising interest rates
• D) a surplus of loanable funds at the original interest rate, which would lead to falling interest rates

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Definitions:

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The 45th President of the United States, who served from January 20, 2017, to January 20, 2021, known for his business background and controversial policies.

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The 44th President of the United States, serving two terms from 2009 to 2017, known for being the first African American to hold the office.

Fifth Amendment

A provision in the U.S. Constitution that guarantees several protections for individuals, including against self-incrimination and double jeopardy, and ensures due process.