All other things unchanged, a general decrease in the amount of government borrowing will typically:

Question

Quizplus · Accepted Answer

A general decrease in the amount of government borrowing reduces the total demand for loanable funds in the economy, which is represented by a leftward shift of the demand curve for loanable funds. This is because the government is a major borrower in most economies, and a decrease in its borrowing reduces the overall demand for funds.

All Other Things Unchanged, a General Decrease in the Amount