Budget Deficits & The Trade Balance Mcqs

Q.  Which of the following statement regarding the loanable funds market is true ?

a. A decrease in the government budget deficit increase the real interest rate
b. An increase in the government budget deficit shifts the supply of loanable funds to the right
c. An increase in private saving shifts the supply of loanable funds to the left
d. An increase in the government budget deficit shifts the supply of loanable funds to the left


ANSWER: See Answer
 
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