Suppose that in China, investment is ¥400 billion, saving is ¥400 billion, tax revenues are ¥500 billion, exports are ¥300 billion, and imports are ¥200 billion.The government budget _______ the supply of loanable funds, which _______ the real interest rate and _______ investment.
A) surplus decreases; raises; increases
B) surplus increases; lowers; decreases
C) deficit decreases; raises; decreases
D) surplus increases; lowers; increases
E) surplus increases; raises; decreases
Correct Answer:
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