How Does an Increase in the Budget Deficit Affect the Demand

question 37

Multiple Choice

How does an increase in the budget deficit affect the demand for dollars and the supply of dollars on the foreign exchange market?

• A)The demand for dollars falls,and the supply of dollars falls.
• B)The demand for dollars rises,and the supply of dollars rises.
• C)The demand for dollars rises,and the supply of dollars falls.
• D)The demand for dollars falls,and the supply of dollars rises.

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Definitions:

Opponens Pollicis

A muscle in the hand that allows the thumb to touch the tips of the other fingers, a key movement for grasping objects.

Opposition

A movement in which the thumb and fingers are brought together, allowing for the manipulation of objects.

Thumb

The first digit of the hand, notable for its opposability, enabling grasping and manipulating objects.

Opponens Pollicis

A small muscle in the hand that allows the thumb to touch the tips of the other fingers, facilitating grip and manipulation of objects.