If the government initiates an expansionary monetary policy at the same time that its budget deficit increases, then the interest rate will __________________.
A. remain unchanged
B. either increase or decrease
C. increase
D. decrease
Answer:B
If the government initiates an expansionary monetary policy at the same time that its budget deficit increases, then the interest rate will __________________.
A. remain unchanged B. either increase or decrease C. increase D. decrease
Explanation: Type: Multiple Choice