Which of the following would not be a consequence of an increase in the U.S.government budget deficit?
A)U.S.interest rates rise
B)U.S.net capital outflow falls
C)the real exchange rate of the U.S.dollar depreciates
D)the U.S.supply of loanable funds shifts left

Question

Quizplus · Accepted Answer

An increase in the U.S. government budget deficit typically leads to higher interest rates and reduced net capital outflow, which can cause the U.S. dollar to appreciate, not depreciate.

Which of the Following Would Not Be a Consequence of an Increase