If a Government Increases Its Budget Deficit,then Interest Rates

question 29

Multiple Choice

If a government increases its budget deficit,then interest rates

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

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Definitions:

Neurotransmitters

Chemical substances produced by neurons that transmit signals across a chemical synapse from one neuron to another target neuron, muscle cell, or gland cell.

Presynaptic Facilitation

An increase in the neurotransmitter release from a presynaptic neuron, enhancing the response of the postsynaptic neuron.

Myelinated Fiber

A nerve fiber with a myelin sheath, which increases the speed at which electrical impulses propagate along the nerve fiber.

Initial Segment

The first portion of a nerve cell axon nearest to the cell body, critical for the initiation of neural signals.