A decrease in the government's budget deficit will
A) increase the supply of loanable funds,lower the interest rate,and increase investment spending
B) reduce the supply of loanable funds,raise the interest rate,and reduce investment
C) increase the demand for loanable funds,raise the interest rate,and reduce investment spending
D) reduce the demand for loanable funds,lower the interest rate,and increase investment spending
E) increase the supply of loanable funds,reduce the demand for loanable funds,leave the interest rate unchanged,and increase investment spending
Correct Answer:
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