When a Government Turns a Deficit into a Surplus We

question 2

Multiple Choice

When a government turns a deficit into a surplus we would expect

• A) interest rates to rise.
• B) interest rates to decrease.
• C) the demand curve for loanable funds to shift rightward.
• D) that more investment is crowded out.

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Definitions:

Hostility

Feelings of anger, aggression, or opposition towards others; it can manifest as aggressive behavior or attitudes.

Regression

A psychological and statistical term referring to a return to a former or less developed state, or a method of predicting the value of a dependent variable based on the value of one or more independent variables.

Bed-Wetting

Involuntary urination while asleep, beyond the age at which bladder control usually occurs.

Born

Coming into existence by birth.