Increased government borrowing to cover a budget deficit causes
A) a higher interest rate and depreciation of the U.S.dollar
B) a higher interest rate and appreciation of the U.S.dollar
C) a lower interest rate and depreciation of the U.S.dollar
D) a lower interest rate and appreciation of the U.S.dollar
E) no change in the interest rate and depreciation of the U.S.dollar
Correct Answer:
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