If a Government Increases Its Budget Deficit, Which of the Following

question 128

Multiple Choice

If a government increases its budget deficit, which of the following best predicts the effects?

• A)Interest rates rise and the trade balance moves toward surplus.
• B)Interest rates rise and the trade balance moves toward deficit.
• C)Interest rates fall and the trade balance moves toward surplus.
• D)Interest rates fall and the trade balance moves toward deficit.

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Definitions:

Observational Learning

The process of learning behaviors by watching and imitating others.

Sexual Arousal

A physiological and psychological state of being awakened to sexual desire, often characterized by increased blood flow to the genitals, elevated heart rate, and, in many cases, a desire for sexual activity.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without the need for prior learning.