Which of the Following Steps Does Not Belong to the Sequence

question 71

Multiple Choice

Which of the following steps does not belong to the sequence of events reflecting the finance of a large government budget deficit?

• A)The U.S.Treasury sells securities.
• B)The sale of securities drives up interest rates.
• C)Attracted by the high interest rates,foreigners purchase dollars in order to invest in the U.S.
• D)Greater demand for the dollar increases its value relative to other currencies.
• E)The rising value of the dollar leads to increased U.S.exports and reduced U.S.imports.

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