Figure 29-1 -Refer to Figure 29-1. Suppose That the U.S. Government Deficit

question 100

Multiple Choice

Figure 29-1
-Refer to Figure 29-1. Suppose that the U.S. government deficit causes interest rates in the United States to rise relative to those in the European Union. Assuming all else remains constant, how would this be represented?

• A) Supply would decrease, demand would decrease and the economy moves from B to C to D.
• B) Supply would increase, demand would decrease and the economy moves from C to B to A.
• C) Demand would increase and the economy moves from A to B.
• D) Demand would decrease and the economy moves from B to A.

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Definitions:

S Corporations

A type of corporation in the United States that allows profits, and some losses, to be passed directly to owners' personal income without being subject to corporate tax rates.

Limited Liability Companies

Business entities that offer their owners limited personal liability for the debts and actions of the company while enabling profit distributions.