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Author Question: Refer to Figure 18-1. Suppose that the U.S. government deficit decreases, causing ... (Read 342 times)

stevenposner

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Figure 18-1










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


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


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Marked as best answer by stevenposner on Mar 16, 2019

mtmmmmmk

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mtmmmmmk

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