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Author Question: Refer to Figure 18-1. Suppose that the U.S. government deficit causes interest rates in ... (Read 71 times)

tth

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Figure 18-1










Refer to Figure 18-1.  Suppose that the U.S. government deficit causes interest rates in the United States to rise relative to those in the European Union. Assuming all else remains constant, how would this be represented?


◦ Supply would decrease, demand would decrease and the economy moves from B to C to D.
◦ Supply would increase, demand would decrease and the economy moves from C to B to A.
◦ Demand would increase and the economy moves from A to B.
◦ Demand would decrease and the economy moves from B to A.


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Marked as best answer by tth on Mar 16, 2019

jaygar71

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jaygar71

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