If the budget deficit were reduced,
a. interest rates and investment would increase.
b. interest rates would increase and investment would decrease.
c. interest rates and investment would decrease.
d. interest rates would decrease and investment would increase.
d
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In the early 1970s, in an attempt to solve the problem of the overvalued U.S. dollar, world leaders
a. increased the price of gold in terms of other currencies b. appreciated the dollar, which made foreign exchange cheaper to U.S. residents c. appreciated the dollar, which made foreign exchange more expensive to U.S. residents d. devalued the dollar, which made foreign exchange cheaper to U.S. residents e. devalued the dollar, which made foreign exchange more expensive to U.S. residents
If a nation repaid its debts by raising taxes, the main effect would be to:
a. Create a wildly inflationary environment. b. Contract the economy due to the decrease in the monetary base. c. Expand the economy due to the increase in the monetary base. d. Redistribute income if the debt was internally held and transfer spending abroad if it was externally held.