If a government increases its budget deficit, which statement would best describe the consequences? а. Interest rates and domestic investment rise. b. Interest rates and domestic investment fall. с. Interest rates rise, and domestic investment falls. d. investment rises. Interest rates fall, and domestic
If a government increases its budget deficit, which statement would best describe the consequences? а. Interest rates and domestic investment rise. b. Interest rates and domestic investment fall. с. Interest rates rise, and domestic investment falls. d. investment rises. Interest rates fall, and domestic
Chapter11: Managing Aggregate Demand: Fiscal Policy
Section: Chapter Questions
Problem 1DQ
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