Multiple Choice
Recently the Greek government had large deficits and people became worried about Greece's ability to continue to make payments on its debt. Which of the these events raise a country's interest rates?
A) an increase in the budget deficit, and increased concerns about the ability of the government to pay back its debt
B) an increase in the budget deficit, but not increased concerns about the ability of the government to pay back its debt
C) increased concerns about the ability of the government to pay back its debt, but not an increase in the budget deficit
D) neither an increase in the budget deficit, nor increased concerns about the ability of the government to pay back its debt
Correct Answer:

Verified
Correct Answer:
Verified
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