If a Government Increases Its Budget Deficit, Which Statement Would

question 152

Multiple Choice

If a government increases its budget deficit, which statement would best describe the consequences?

• A) Interest rates and domestic investment rise.
• B) Interest rates and domestic investment fall.
• C) Interest rates rise, and domestic investment falls.
• D) Interest rates fall, and domestic investment rises.

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Definitions:

Unions

Organizations formed by workers to protect their rights and interests, often engaging in collective bargaining with employers.

International Trade Union Confederation

A global organization that brings together national trade unions from various countries to promote workers' rights and interests internationally.

Main Objectives

The primary goals or aims that an individual, organization, or project seeks to achieve.

European Union

A political and economic union of 27 European countries that are located primarily in Europe, aiming to promote peace, establish a unified market, ensure the free movement of people, goods, services, and capital, enact legislation in justice and home affairs, and maintain common policies on trade, agriculture, fisheries, and regional development.