What Impact Might an Increase in the Budget Deficit Have

question 152

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.
• E)Interest rates rise and exchange rates are unchanged.

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