Figure 4.2
-In Figure 4.2, one possible explanation for the increase in the interest rate from i1 to i2 is
A) an increase in economic growth.
B) an increase in government budget deficits.
C) a decrease in government budget deficits.
D) a decrease in economic growth.
E) a decrease in the riskiness of bonds relative to other investments.
Correct Answer:
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