If a Government Increases Its Budget Deficit, Which Statement Would

question 125

Multiple Choice

If a government increases its budget deficit, which statement would best predict the effects?

• A) Interest rates rise, and the real exchange rate appreciates.
• B) Interest rates fall, and the real exchange rate depreciates.
• C) Interest rates rise, and the real exchange rate depreciates.
• D) Interest rates fall, and the real exchange rate appreciates.

---

Definitions:

Marlon Brando

An influential American actor noted for his intense performances and contributions to the acting profession, especially in the mid-20th century.

Youth Picture

Films specifically designed to appeal to younger audiences, often focusing on themes of rebellion, coming-of-age, romance, and adventure.

Marilyn Monroe

An iconic American actress, model, and singer, known for her glamorous persona, distinctive platinum blonde appearance, and her roles in films during the 1950s.

Unique Charisma

A special or distinct personal magnetism or appeal that sets an individual apart from others.