Figure 4.2 -In Figure 4.2, One Possible Explanation for a Decrease in Decrease

question 8

Multiple Choice

Figure 4.2
-In Figure 4.2, one possible explanation for a decrease in the interest rate from i₂ to i₁ is

• A)an increase in government budget deficits.
• B)an increase in expected inflation.
• C)a decrease in economic growth.
• D)a decrease in the riskiness of bonds relative to other investments.

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