Question: a. If a government increases its budget deficit, which statement would best describe the consequences? Interest rates and domestic investment rise. b. Interest rates and

a. If a government increases its budget deficit,

a. If a government increases its budget deficit, which statement would best describe the consequences? Interest rates and domestic investment rise. b. Interest rates and domestic investment fall. Interest rates rise, and domestic investment falls. d. Interest rates fall, and domestic investment rises

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