
Figure 4.2

-In Figure 4.2,one possible explanation for the increase in the interest rate from i? to i? is
A) an increase in economic growth.
B) an increase in government budget deficits.
C) a decrease in government budget deficits.
D) a decrease in economic growth.
E) a decrease in the riskiness of bonds relative to other investments.
Correct Answer:
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Q49: Figure 4.2 Q50: In his liquidity preference framework,Keynes assumed that Q51: When the federal government's budget deficit decreases,the Q52: Factors that can cause the supply curve Q53: Factors that can cause the supply curve Q55: When the inflation rate is expected to Q56: The economist Irving Fisher,after whom the Fisher
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