The Sequence of Events Following an Increase in the Federal

question 117

Multiple Choice

The sequence of events following an increase in the federal deficit would be higher interest rates, a(n)

• A)depreciating dollar, and a larger current account deficit.
• B)depreciating dollar, and a smaller current account deficit.
• C)appreciating dollar, and a larger current account deficit.
• D)appreciating dollar, and a smaller current account deficit.

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