An Increase in the Budget Deficit Makes Domestic Interest Rates

question 4

Multiple Choice

An increase in the budget deficit makes domestic interest rates

• A)rise because the supply of loanable funds shifts left.
• B)fall because the supply of loanable funds shifts left.
• C)rise because the demand for loanable funds shifts right.
• D)fall because the demand for loanable funds shifts right.

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Definitions:

Biological Systems

Complex networks of biologically relevant entities such as cells, organisms, or ecosystems that function through systematic interactions.

Interact

To act in such a manner as to have an effect on another; in biology, it often refers to the way biological entities, such as molecules or organisms, affect each other.

Interdependent

The reciprocal relationship between entities where each depends on the other, leading to a situation where their interactions significantly influence their viability or functionality.

Systems Biology

A field of biology that synthesizes knowledge of many small parts to understand the whole. Also referred to as integrative biology or integrative systems biology.