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.

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Definitions:

Lethal Force

The application of force capable of leading to death or severe physical harm.

Morally Justified

An action or decision is considered morally justified when it aligns with ethical principles or moral law, being deemed acceptable based on a framework of moral or ethical standards.

Miller

In the context of legal decisions, often refers to a landmark case or principle, but requires further specification to provide a precise definition.

Suspects Brandishing Weapons

Individuals suspected of a crime who are seen or reported to be waving or displaying weapons in a threatening manner.