The large budget deficits of the U.S.government in the 2000s have not increased U.S.interest rates because:
A)Americans increased their rate of saving.
B)businesses cut back on investment spending by an equal amount.
C)the value of the U.S.dollar rose.
D)foreigners were willing to buy the increased U.S.debt.

Question

Quizplus · Accepted Answer

Foreigners were willing to buy the increased U.S. debt, which helped finance the deficits without causing U.S. interest rates to rise significantly.

The Large Budget Deficits of the U