If a Government Increases Its Budget Deficit,then Interest Rates

question 29

Multiple Choice

If a government increases its budget deficit,then interest rates

• A)rise and the real exchange rate appreciates.
• B)fall and the real exchange rate depreciates.
• C)rise and the real exchange rate depreciates.
• D)fall and the real exchange rate appreciates.

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Definitions:

Mean

The arithmetic average of a dataset, calculated by adding up all the numbers in a dataset and dividing by the count of those numbers.

Median

The middle value in a dataset when it is ordered from smallest to largest, or the mean of the two middle values if the dataset has an even number of observations.

Distribution Shape

Refers to the geometric arrangement of data points in a distribution, common shapes include normal, skewed, or bimodal distributions.

Mean Number

The arithmetic average of a set of values, calculated by dividing the sum of all values by the number of values.