Figure 29-1 -Refer to Figure 29-1. Suppose That the U.S. Government Deficit

question 228

Multiple Choice

Figure 29-1
-Refer to Figure 29-1. Suppose that the U.S. government deficit decreases, causing interest rates in the United States to fall relative to those in the European Union. Assuming all else remains constant, how would this be represented?

• A) Supply would decrease, demand would decrease and the economy moves from B to C to D.
• B) Supply would increase, demand would decrease and the economy moves from C to B to A.
• C) Supply would decrease, demand would increase and the economy moves from A to D to C.
• D) Supply would increase, demand would increase and the economy moves from D to A to B.

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Definitions:

Relevance

The degree to which something is related or useful to the matter at hand.

Polls

Surveys of public opinion from a particular sample, used to predict the outcome of elections or gather information on attitudes towards a topic.

Representative Sample

A sample that is similar to the larger population from which it was drawn.

Modus Ponens

A hypothetical syllogism in which the antecedent premise is affirmed by the consequent premise.