Increased government borrowing to cover a budget deficit results ...

[B]

Increased government borrowing to cover a budget deficit results in:
 a. a higher interest rate and the depreciation of the U.S. dollar.
  b. a higher interest rate and the appreciation of the U.S. dollar.
  c. a lower interest rate and the depreciation of the U.S. dollar.
  d. a lower interest rate and the appreciation of the U.S. dollar.
  e. increased purchases of foreign assets by U.S. residents.

Question 2

One of the most widely reported measures of inflation is the:
 a. consumer price index.
  b. producer price index.
  c. GDP deflator.
 d. Gini coefficient.
 e. real interest rate.

[angrybirds13579]

Answer to Question 1

b

Answer to Question 2

a