Which of the Following Explains Why a Budget Deficit Can

question 45

Multiple Choice

Which of the following explains why a budget deficit can cause a trade deficit?

• A) An increase in the budget deficit raises domestic interest rates,resulting in a current account surplus and an appreciation of its currency.
• B) An increase in the budget deficit lowers domestic interest rates,resulting in a current account deficit and a depreciation of the currency.
• C) An increase in the budget deficit raises domestic interest rates,resulting in a capital account surplus and an appreciation of the currency.
• D) An increase in the budget deficit lowers domestic interest rates,resulting in a capital account deficit and a depreciation of the currency.

---

Definitions:

Drug Overdose

The ingestion or application of a drug in quantities greater than recommended, leading to a toxic state or death.

Surprising Example

An unexpected case or illustration that deviates from what is considered common or typical.

Gender And Suicide

The study of how gender influences suicidal behavior and suicide rates, often identifying differences between males and females.

Lethal Means

Methods or objects capable of causing death, often discussed in the context of suicide prevention.