If Other Factors Are Held Constant and the Federal Government

question 4

Multiple Choice

If other factors are held constant and the federal government increases its borrowing from the private sector in order to pay for an increased budget deficit,the result will be

• A)an overall increase in the interest rate.
• B)an overall decrease in the interest rate.
• C)a cancelling of the crowding out effect.
• D)an increase in net exports.

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Definitions:

Affect

A term referring to the observable manifestation of a subject's emotions or feelings.

Concentration

The ability to focus one's attention or mental effort on a specific object, task, or activity.

Nystagmus

A vision condition characterized by involuntary eye movements, often resulting in reduced or limited vision.

Inhalant Abuse

The dangerous practice of inhaling chemical vapors from household, industrial, or medical products to achieve a psychoactive effect.