What is the effect of deficit spending on interest rates

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1. Ceteris paribus, what is the effect of deficit spending on interest rates?

Interest rates decline.

Interest rates hold constant because the demand for credit decreases.

Interest rates rise.

There is no impact unless the Federal Reserve (Fed) decides to alter the money supply.

2. Antitrust legislation in the United States in recent decades has:

Been vigorously and consistently enforced

Been uniformly ignored with respect to enforcement

Varied between the extremes of being enforced and being ignored

Destroyed the American dream for the nation's entrepreneurs

Reference no: EM131393699

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