Multiple Choice
An increase in the budget deficit
A) reduces investment because the interest rate rises.
B) reduces investment because the interest rate falls.
C) raises investment because the interest rate rises.
D) raises investment because the interest rate falls.
Correct Answer:

Verified
Correct Answer:
Verified
Q142: In 2009 Greece's budget deficit rose and
Q143: If the U.S.imposed import quotas on cotton,then
Q144: If the risk of buying U.S.assets rises
Q145: Figure 32-5<br>Refer to this diagram of the
Q146: Which of the following contains a list
Q149: A country produces two goods, soda and
Q149: If the U.S.government increased its deficit,then<br>A)U.S.bonds would
Q150: Which of the following decrease if the
Q151: Which of the following contains a list
Q152: At the original exchange rate an import