Deficits that arise discretionary fiscal policy lead to
A) increased private demand for money,which is offset by the sale of more government securities
B) decreased private demand for money,which is offset by the sale of more government securities and higher interest rates
C) increases in the number of government securities sold to the public and higher interest rates
D) decreases in the number of government securities sold to the public and higher interest rates
E) increases in the public's demand for money and increases in the number of government securities sold to the public,leading to lower interest rates
Correct Answer:
Verified
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A)both b and
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A)
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A)higher interest
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