What Would an Increase in the Budget Deficit Most Likely

question 138

Multiple Choice

What would an increase in the budget deficit most likely cause?

• A) a shortage of loanable funds at the original interest rate, which would lead to falling interest rates
• B) a surplus of loanable funds at the original interest rate, which would lead to rising interest rates
• C) a shortage of loanable funds at the original interest rate, which would lead to rising interest rates
• D) a surplus of loanable funds at the original interest rate, which would lead to falling interest rates

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Definitions:

Confidence Intervals

Ranges within which a population parameter is estimated to lie, with a certain level of confidence.

Population Mean

The average of a set of characteristics, measurements, or counts in the entire population being studied.

SRS

Simple Random Sampling, a fundamental sampling technique where each member of the population has an equal chance of being selected.

Margin Error

The highest degree to which the outcomes from a sample are anticipated to vary from the actual value of the population.