Increased government borrowing to cover a budget deficit results in:
A) a higher interest rate and the depreciation of the U.S.dollar.
B) a higher interest rate and the appreciation of the U.S.dollar.
C) a lower interest rate and the depreciation of the U.S.dollar.
D) a lower interest rate and the appreciation of the U.S.dollar.
E) increased purchases of foreign assets by U.S.residents.
Correct Answer:
Verified
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