Other things equal, ________ interest rates increase the government deficit because of ________ government interest payments.

A. low; higher
B. low; lower
C. high; lower
D. high; higher


Answer: D

Economics

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According to supply-side economists, lowering corporate income taxes:

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Several producers in industry A developed an improved technology that reduces the quantity of resources used to produce a given output. Which of the following would be expected?

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Economics

An economist who is studying the relationship between the money supply, interest rates, and the rate of inflation is engaged in:

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Economics