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5. Classify each of the following in terms of their effect on interest rates (increase or decrease): I. The federal government incurs a larger deficit

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5. Classify each of the following in terms of their effect on interest rates (increase or decrease): I. The federal government incurs a larger deficit II. The central bank increases the money supply III. Total household wealth increases A) I increases, II increases, III increases B) I increases, II decreases, III decreases C) I decreases, II increases, III increases D) I decreases, II decreases, III decreases E) None of the above

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