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