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Kevin Morris
on Nov 11, 2024

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If the federal government budget deficit increases,then interest rates will _____,the U.S.dollar will _____,and the foreign trade deficit will _____.

A) increase;depreciate;decrease
B) increase;appreciate;increase
C) increase;depreciate;increase
D) decrease;appreciate;increase
E) decrease;depreciate;decrease

Federal Government Budget Deficit

The financial situation that occurs when a government's expenditures exceed its revenues in a fiscal year.

Interest Rates

The charges levied by lenders on borrowers for the privilege of using the lender's money, expressed as a proportion of the borrowed amount per unit of time.

U.S. Dollar

The official currency of the United States, which serves as a major reserve currency and is used in many international transactions.

  • Identify the impact of fiscal policies on national savings, interest rates, and investment.
  • Assess the correlation between the national fiscal shortfalls and international trade imbalances.
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Zetty SorayaNov 11, 2024
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