Which of the following would you expect to increase both interest ...

[asd123]

Which of the following would you expect to increase both interest rates and exchange rates?
 
  A) expansionary monetary policy
  B) contractionary monetary policy
  C) expansionary fiscal policy
  D) Both B and C will increase both interest rates and exchange rates.

Question 2

Refer to the Article Summary. When does the Treasury Department borrow? Why would the Treasury have to borrow more than it estimated, as was indicated by its letter to Congress to raise the debt ceiling? When would the Treasury repay what it borrowed
 
  , and who is it repaying?

[Beatricemm]

Answer to Question 1

D

Answer to Question 2

When tax revenues are not sufficient to pay the federal government's bills, the Treasury borrows the necessary funds. The Treasury would need to borrow more than it estimated if the federal budget deficit is larger than was estimated. The Treasury would repay borrowed funds if the federal budget is in surplus, and it is repaying the investors who had bought its bonds.

[asd123]

Thank you

[Beatricemm]

Happy to help you