A debtor's quantity of credit demanded and the rate of interest are likely to be:
A) positively correlated.
B) unrelated.
C) negatively correlated.
D) positively related if the rate of interest is below 10 and negatively related if it is above 10.
Question 2
A federal deficit of 300 billion means that
A) the government plans on collecting 300 billion in taxes this year.
B) the government has a total debt of 300 billion.
C) the government is spending 300 billion a year more than it is collecting in taxes.
D) government spending is 300 billion a year.
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