Multiple Choice
In the long run,
A) an increase in the federal budget deficit can lower the interest rate and investment spending.
B) an increase in the federal budget deficit can raise the interest rate and investment spending.
C) a decrease in the federal budget deficit can lower the interest rate and raise investment spending.
D) a decrease in the federal budget deficit can raise the interest rate and lower investment spending.
E) a decrease in the federal budget deficit can lower the interest rate and lower investment spending.
Correct Answer:
Verified
Correct Answer:
Verified
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