Which of the Following Is the Chief Link Between the U.S.federal

question 17

Multiple Choice

Which of the following is the chief link between the U.S.federal budget deficit and the U.S.trade deficit during the 1980s?

• A)High U.S.interest rates led to a rise in the relative value of the dollar.
• B)High U.S.interest rates led to a decrease in the relative value of the dollar.
• C)Higher interest rates resulted in the crowding out of some private investment,reducing the stimulating effect of the government's deficit.
• D)The U.S.price level declined relative to that of foreign countries,causing U.S.interest rates to fall.
• E)The additional fiscal stimulus provided by a higher government deficit encouraged some firms to invest more.

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Definitions:

Evidence Of Usury

Evidence of usury involves documentation or proof that a lender charged an interest rate above the legal limit established by law, making a loan agreement illegal or subject to penalties.

Courts Require

This refers to the mandates or conditions that legal courts demand or need for proceedings, evidence, or actions within their jurisdictions.

Public Policy

The principles and standards regarded by the legislature or by courts as being of fundamental concern to the state and the whole of society.

Void Agreement

A contract or agreement that is null and has no legal effect from the beginning due to illegal terms or conditions violating legal statutes.