Figure 4.2 -In Figure 4.2, One Possible Explanation for the Increase in Increase

Multiple Choice

Figure 4.2
-In Figure 4.2, one possible explanation for the increase in the interest rate from i₁ to i₂ is

A) an increase in economic growth.
B) an increase in government budget deficits.
C) a decrease in government budget deficits.
D) a decrease in economic growth.
E) a decrease in the riskiness of bonds relative to other investments.