Multiple Choice
A deficit resulting from the use of discretionary fiscal policy
A) increases interest rates
B) decreases interest rates
C) increases interest rates if the effect of the decrease in the demand for money is greater than the effect of the increase in the supply of government securities
D) increases interest rates if the effect of the decrease in the demand for money is less than the effect of the increase in the supply of government securities
E) increases interest rates if the effect of the increase in the demand for money is greater than the effect of the decrease in the supply of government securities
Correct Answer:
Verified
Correct Answer:
Verified
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