In Figure 4.2, one possible explanation for a decrease in the interest rate from i2 to i1 is
A. an increase in government budget deficits.
B. an increase in expected inflation.
C. a decrease in economic growth.
D. a decrease in the riskiness of bonds relative to other investments.
Answer:C
In Figure 4.2, one possible explanation for a decrease in the interest rate from i2 to i1 is
A. an increase in government budget deficits.
 B. an increase in expected inflation.
 C. a decrease in economic growth.
 D. a decrease in the riskiness of bonds relative to other investments.
