Figure 18-1 -Refer to Figure 18-1.Suppose That the U.S.government Deficit Causes Interest

question 152

Multiple Choice

Figure 18-1
-Refer to Figure 18-1.Suppose that the U.S.government deficit causes interest rates in the United States to rise relative to those in the European Union.Assuming all else remains constant,how would this be represented?

• A)Supply would decrease,demand would decrease and the economy moves from B to C to D.
• B)Supply would increase,demand would decrease and the economy moves from C to B to A.
• C)Demand would increase and the economy moves from A to B.
• D)Demand would decrease and the economy moves from B to A.

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Definitions:

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