What Impact Might an Increase in the Budget Deficit Have

question 152

Multiple Choice

What impact might an increase in the budget deficit have on interest rates and exchange rates?

• A)Interest rates and exchange rates increase.
• B)Interest rates increase and exchange rates decrease.
• C)Interest rates decrease and exchange rates increase.
• D)Interest rates and exchange rates decrease.
• E)Interest rates rise and exchange rates are unchanged.

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Definitions:

Principals

Individuals or entities that own, govern, or have significant authority within an organization or operation.

Time Horizon

The length of time over which an investment, project, or policy is contemplated or expected to be effective or profitable.

Creativity

The capacity to generate innovative and useful ideas or solutions.

New Products

Items or services that have been recently introduced to the market, offering new features or benefits.