Figure 4.1 -In Figure 4.1, the Most Likely Cause of the Increase

Multiple Choice

Figure 4.1
-In Figure 4.1, the most likely cause of the increase in the equilibrium interest rate from i₁ to i₂ is a(n) ________ in the ________.

A) increase; expected inflation rate
B) decrease; expected inflation rate
C) increase; government budget deficit
D) decrease; government budget deficit