Figure 15-1 -Refer to Figure 15-1. What Is Most Likely to Happen

question 116

Multiple Choice

Figure 15-1
-Refer to Figure 15-1. What is most likely to happen if the interest rate is equal to 2?

• A) There is an excess demand for money, and the interest rate will fall.
• B) There is an excess supply of money, and the interest rate will rise.
• C) There is an excess demand for money, and the interest rate will rise.
• D) There is an excess supply of money, and the interest rate will fall.

---

Definitions:

Federal Expenditures

The spending by the federal government, including spending on defense, education, public welfare, and infrastructure projects.

National Debt

is the total amount of money that a country's government has borrowed, by various means, and has not yet repaid.

Top Marginal Tax Rate

The highest tax rate applied to the last dollar of taxable income, affecting the highest income earners within a progressive tax system.

1980

A year marked by significant global events including the eruption of Mount St. Helens and the election of Ronald Reagan as the President of the United States.