What Impact Might an Increase in the Budget Deficit Have

question 132

Multiple Choice

What impact might an increase in the budget deficit have on interest rates and exchange rates?

• A)Interest rates and exchange rates increase.
• B)Interest rates increase and exchange rates decrease.
• C)Interest rates decrease and exchange rates increase.
• D)Interest rates and exchange rates decrease.

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Definitions:

Thermoregulatory Maximum

The maximum capacity of an organism to maintain its core internal temperature within an optimal range, despite external temperature fluctuations.

Set Point

A general term for the level at which negative feedback tries to maintain stability.

Autonomic Nervous System

The part of the nervous system that controls involuntary bodily functions, including heart rate, digestion, and respiratory rate.

Sympathetic

Relating to the part of the autonomic nervous system that typically prepares the body for action in threatening situations.