The Effect of Budget Deficits on Interest Rates

question 38

Multiple Choice

The effect of budget deficits on interest rates

• A)increases private investment,so eventually the capital stock rises.
• B)increases private investment,so eventually the capital stock falls.
• C)decreases private investment,so eventually the capital stock rises.
• D)decreases private investment,so eventually the capital stock falls.

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Definitions:

Plantar Reflex

A reflex elicited when the sole of the foot is stimulated, causing the toes to point downward.

Dorsiflexion

The movement that brings the top of the foot toward the shin, decreasing the angle between the dorsum of the foot and the leg.

Plantar Flexion

A movement that decreases the angle between the sole of the foot and the back of the leg, such as pointing the toes.

Reflex Arc

The neural pathway that mediates a reflex action, involving sensory receptors, neural pathways, and effectors.