Asked by
Lee’s Beauty
on Nov 11, 2024
Verified
Which of the following steps does not belong to the sequence of events reflecting the finance of a large government budget deficit?
A) The U.S.Treasury sells securities.
B) The sale of securities drives up interest rates.
C) Attracted by the high interest rates,foreigners purchase dollars in order to invest in the U.S.
D) Greater demand for the dollar increases its value relative to other currencies.
E) The rising value of the dollar leads to increased U.S.exports and reduced U.S.imports.
Government Budget Deficit
occurs when a government's expenditures exceed its revenues, leading to borrowing or debt accumulation.
U.S. Treasury
The government department responsible for managing federal finances, including issuing currency and managing public debt.
Securities
Financial instruments representing ownership (stocks), a debt agreement (bonds), or rights to ownership (derivatives).
- Recognize the implications of large government budget deficits on the economy and interest rates.
Verified Answer
JC
Learning Objectives
- Recognize the implications of large government budget deficits on the economy and interest rates.