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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Definitions:

Interference Theory

A theory in psychology that explains how new information can sometimes cause forgetting of old information.

Decay

The gradual reduction in the strength, quality, or quantity of something over time.

Peg Method

A mnemonic technique that involves associating items to be remembered with a list of peg words you have memorized in advance.

Method of Loci

A mnemonic strategy that involves visualizing items to be remembered in specific physical locations.