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
Question 2
If the CPI in the United States was 150 in 2003 and 160 in 2004, the inflation rate over the year is _____.
a. 10 percent
b. 20 percent
c. 7 percent
d. 30 percent
e. 50 percent
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