If a Country Raises Its Budget Deficit,then in the Market

question 5

Multiple Choice

If a country raises its budget deficit,then in the market for foreign-currency exchange

• A)supply shifts left.
• B)supply shifts right.
• C)demand shifts left.
• D)supply shifts right

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Definitions:

Majority Voting

A decision-making process where the option that receives the most votes from participants wins, often used in elections and organizational decisions.

Negative Externalities

Costs incurred by third parties not directly involved in an economic activity, for example, pollution affecting non-participating individuals.

Economically Inefficient Outcomes

Situations where resources are not allocated optimally, resulting in lost potential utility or value.

Economists

Professionals who study the production, distribution, and consumption of goods and services.