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MMLU / A nation that must consistently borrow to cover annual budget deficits risks

Problem

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question

A nation that must consistently borrow to cover annual budget deficits risks

choices

  1. a depreciation of the nation's currency as foreigners increase investment in the nation.
  2. a decline in net exports as the nation's goods become more expensive to foreign consumers.
  3. lower interest rates that discourage foreign investment in the nation.
  4. an appreciation of the nation's currency as foreigners decrease investment in the nation.

subject

high_school_macroeconomics

Discussion

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Source and history

Official source

initial import