Despite an increase in the government deficit, interest rates could fall if
A) United States investments look stronger than foreign investments, causing a capital inflow.
B) there is a decrease in bank reserves by the Fed.
C) the supply of loanable funds decreases.
D) All of the above are correct.
Correct Answer:
Verified
Q95: Before government spending is increased, the government
Q96: In addition to borrowing to finance the
Q97: Ceteris paribus, a rise in government borrowing
Q98: The rise in interest rates generated by
Q99: A rise in the demand for funds
Q101: If the domestic currency depreciates, then
A)exports decrease.
B)imports
Q102: Changes in expectations lead to changes in
Q103: In most of the years since the
Q104: In recent years, the federal government
A)ran significant
Q105: If there is an increase in government
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents