Other Factors Being Constant, What Happens When the Federal Government

question 27

Multiple Choice

Other factors being constant, what happens when the federal government finances a growing budget deficit by increasing the amount it borrows from the private sector?

• A) There will be an increase in the interest rate.
• B) There will be a decrease in the interest rate.
• C) The crowding out effect will be cancelled out.
• D) There will be an increase in net exports.

---

Definitions:

Rs-fMRI

Resting-state functional magnetic resonance imaging, a method for measuring brain activity by detecting changes associated with blood flow.

Networks

Systems of interconnected elements or individuals that collaborate or interact to achieve certain outcomes or process information.

Scientists

Individuals who engage in systematic research to acquire knowledge and understanding in various fields of study, including biology, chemistry, physics, and social sciences.

Anticipation of Pain

The psychological and physiological response to expecting pain, which can modify perception and pain management strategies.