Multiple Choice
If the U.S.government increased its deficit,then
A) U.S.bonds would pay higher interest but a dollar would purchase fewer foreign goods.
B) U.S.bonds would pay higher interest and a dollar would purchase more foreign goods.
C) U.S.bonds would pay lower interest and a dollar would purchase fewer foreign goods.
D) U.S.bonds would pay lower interest but a dollar would purchase more foreign goods.
Correct Answer:

Verified
Correct Answer:
Verified
Q144: If the risk of buying U.S.assets rises
Q145: Figure 32-5<br>Refer to this diagram of the
Q146: Which of the following contains a list
Q147: An increase in the budget deficit<br>A)reduces investment
Q149: A country produces two goods, soda and
Q150: Which of the following decrease if the
Q151: Which of the following contains a list
Q152: At the original exchange rate an import
Q153: If a government started with a budget
Q154: If U.S.citizens decide to save a smaller