In 2008, Germany had a budget deficit of 37 billion euros. This deficit resulted in
A) a rightward shift of the supply of loanable funds curve.
B) a leftward shift of the demand for loanable funds curve.
C) a crowding out effect in which investment decreases.
D) the Ricardo-Barro effect and an increase in the interest rate.
Correct Answer:
Verified
Q205: Q206: In 2008, Australia had a government budget Q207: In 2008, Germany had a budget deficit Q208: What is the approximate relationship among the Q209: Explain the relationship between the real interest Q211: What is the relationship between the real Q212: What are the factors that change the Q213: How does expected future income affect saving Q214: In the loanable funds market, what variable Q215: Expected profit and the real interest rate
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents