What Would an Increase in the Budget Deficit Most Likely

question 187

Multiple Choice

What would an increase in the budget deficit most likely do to investment spending?

• A) It would make investment spending fall because the interest rate rises.
• B) It would make investment spending rise because the interest rate falls.
• C) It would make investment spending fall because the interest rate falls.
• D) It would make investment spending rise because the interest rate rises.

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