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.

---

Definitions:

Aptitude Tests

Standardized tests designed to measure an individual's ability or potential to perform certain tasks and succeed in certain areas.

Manufacturing Sector

The branch of industry involved in the production of goods using raw materials and machinery.

Economy

A system that involves the production, distribution, and consumption of goods and services within a particular geographic region.

Nonprofit Organizations

Organizations that operate for the benefit of the public or a specific group of individuals, rather than for profit.