If a Country's Budget Deficit Increases, Then in the Foreign

question 68

Multiple Choice

If a country's budget deficit increases, then in the foreign exchange market,

• A)the supply of its currency shifts right, so the exchange rate falls.
• B)the demand for its currency shifts right, so the exchange rate rises.
• C)the supply of its currency shifts left, so the exchange rate rises.
• D)the demand for its currency shifts left.so the exchange rate falls.

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Definitions:

Unarmed Robbery

The act of stealing from someone without the use of weapons.

Violence

The use of physical force with the intent to injure, damage, or kill someone or something.

Burglars

Individuals who unlawfully enter buildings with the intent to commit theft or any other felony.

Empty House

A building or space with no current occupants, often evoking a sense of abandonment or solitude.