When the interest rate in an economy increases, it is likely the result of either:
A. a decrease in the government’s budget surplus or an increase in its budget deficit.
B. a decrease in the government budget surplus or its budget deficit.
C. an increase in the government budget surplus or a decrease in its budget deficit.
D. an increase in the government budget surplus or its budget deficit.
Answer:A
When the interest rate in an economy increases, it is likely the result of either:
A. a decrease in the government’s budget surplus or an increase in its budget deficit. B. a decrease in the government budget surplus or its budget deficit. C. an increase in the government budget surplus or a decrease in its budget deficit. D. an increase in the government budget surplus or its budget deficit.
Explanation: Type: Multiple Choice