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.

A

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You are given the following linear trend model: Ft = 345.60 - 200.5(t). This model implies that in year 1, the dependent variable had a value of 145.1

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