In 2007, Singapore's government ran a budget surplus of $4.5 billion. The budget surplus loanable funds and the real interest rate.

Question

Quizplus · Accepted Answer

A budget surplus means that the government is collecting more revenue than it is spending. This increases the supply of loanable funds in the financial market, as the government has excess funds that it can lend out to other borrowers. An increase in the supply of loanable funds will lead to a decrease in the real interest rate, as borrowers will be able to obtain loans at a lower cost. Therefore, the correct answer is D: increased the supply of; lowered.

In 2007, Singapore's Government Ran a Budget Surplus of $4