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In the 1990s, the United States Eliminated Its Budget Deficit

Question 96

Multiple Choice

In the 1990s, the United States eliminated its budget deficit and expanded the money supply.This should have led to


A) lower real interest rates and a depreciation of the dollar.
B) lower real interest rates and an appreciation of the dollar.
C) higher real interest rates and a depreciation of the dollar.
D) higher real interest rates and an appreciation of the dollar.

Correct Answer:

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