If a Country's Budget Deficit Increases, Then in the Foreign

question 68

Multiple Choice

If a country's budget deficit increases, then in the foreign exchange market,

• A)the supply of its currency shifts right, so the exchange rate falls.
• B)the demand for its currency shifts right, so the exchange rate rises.
• C)the supply of its currency shifts left, so the exchange rate rises.
• D)the demand for its currency shifts left.so the exchange rate falls.

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Definitions:

Interpersonal Connections

Relationships or bonds between individuals based on mutual feelings, interactions, and shared experiences, influencing emotional and psychological well-being.

Break The Rules

Engaging in actions or behaviors that violate established guidelines, laws, or societal norms.

Bad Apple Effect

The phenomenon where the negative behavior of one individual affects the performance or morale of the entire group.

Expelled

describes the action of being forced to leave an institution or organization as a form of punishment.