What Impact Might an Increase in the Budget Deficit Have

question 132

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.

---

Definitions:

Respiratory Movements

The actions of the respiratory system involved in the inhalation and exhalation of air, facilitating gas exchange between the atmosphere and the body's cells.

Valves

Structures that exist within various types of vessels, including veins and the heart, which maintain the direction of blood flow by opening and closing depending on the pressure gradient.

Systemic Circuit

The part of the cardiovascular system that carries oxygenated blood away from the heart to the body, and returns deoxygenated blood back to the heart.

Artificial Red Blood Cells

Lab-created substitutes for natural red blood cells designed to mimic their oxygen-carrying function.