The key link between the twin deficits involves:
a. higher interest rates and a stronger dollar.
b. lower interest rates and a stronger dollar.
c. higher interest rates and a weaker dollar.
d. lower interest rates and larger trade deficits
e. higher interest rates leading to more exports.
Question 2
Inflation can be caused:
a. only by increases in aggregate demand.
b. only by increases in aggregate supply.
c. only by decreases in aggregate supply.
d. by increases in aggregate supply or decreases in aggregate demand.
e. by increases in aggregate demand or decreases in aggregate supply.
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