An Increase in the Budget Deficit Makes Domestic Interest Rates

question 4

Multiple Choice

An increase in the budget deficit makes domestic interest rates

• A)rise because the supply of loanable funds shifts left.
• B)fall because the supply of loanable funds shifts left.
• C)rise because the demand for loanable funds shifts right.
• D)fall because the demand for loanable funds shifts right.

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Definitions:

Nonverbal Cues

Body language, facial expressions, and other physical behaviors that communicate messages without the use of words.

Specific Information

Detailed and precise data or facts about a particular subject.

Reassures Them

Offers comfort or confidence to someone to alleviate their doubts or fears.

Respect Views

The practice of acknowledging and considering others' opinions, even if they differ from one's own.