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Graph 13-2 -In Graph 13-2, an Increase in the Government Budget Deficit

Question 19

Multiple Choice

Graph 13-2 Graph 13-2 -In Graph 13-2, an increase in the government budget deficit causes the equilibrium interest rate to: A) be unchanged B) increase from r₁ to r<sub>2</sub> in panel (a) C) increase from E₁ to E<sub>2</sub> in panel (c) D) decrease from r<sub>2</sub> to r₁ in panel (a) E) both B and C
-In Graph 13-2, an increase in the government budget deficit causes the equilibrium interest rate to:


A) be unchanged
B) increase from r₁ to r2 in panel (a)
C) increase from E₁ to E2 in panel (c)
D) decrease from r2 to r₁ in panel (a)
E) both B and C

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