The sequence of events following an increase in the federal deficit would be higher interest rates, a(n)

a. depreciating dollar, and a larger current account deficit.
b. depreciating dollar, and a smaller current account deficit.
c. appreciating dollar, and a larger current account deficit.
d. appreciating dollar, and a smaller current account deficit.

c

Economics

You might also like to view...

The precautionary principle is least likely to be applied to which of the following environmental issues?

a. Building a new road b. Global warming c. The approval process of a new pesticide d. Timber harvesting in a rainforest e. Storage of nuclear waste

Economics

Business optimism about future sales tends to __________ investment expenditures, shifting the AD curve to the __________

A) increase; left B) increase; right C) decrease; left D) decrease; right

Economics