Bigger government budget deficits may be expected to increase interest rates because
A)all of the following
B)prices increase
C)output increases
D)the demand for money increases as income increases
E)the government is selling more securities

Question

Quizplus · Accepted Answer

All of the choices are correct. Bigger government budget deficits may be expected to increase interest rates because prices increase, output increases, the demand for money increases as income increases, and the government is selling more securities.

Bigger Government Budget Deficits May Be Expected to Increase Interest