A High Budget Deficit Tends to Place ____ Pressure on Interest

question 6

Multiple Choice

A high budget deficit tends to place ____ pressure on interest rates; the Fed's tightening of the money supply tends to place ____ pressure on interest rates.

• A)upward; upward
• B)upward; downward
• C)downward; downward
• D)downward; upward

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Definitions:

Rights Theory

A framework in ethical philosophy that focuses on the rights belonging to individuals, emphasizing the importance of respecting these rights in societal and personal interactions.

Ethical Behavior

Conduct that is consistent with accepted principles of right and wrong governing the professional and personal actions of individuals.

Profit Maximization Theory

An economic principle suggesting that companies are best served by producing goods or services at a level where marginal costs equal marginal revenues.

Kantian Theory

A philosophical doctrine based on the works of Immanuel Kant, emphasizing duty, moral law, and the categorical imperative as foundations of ethical behavior.