An increased government budget deficit causes the ____ loanable funds to shift to the _____.

Name: An increased government budget deficit causes the ____ loanable funds to shift to the _____.
Brand: Quizplus
Rating: 4.9 (53 reviews)

Question

Quizplus · Accepted Answer

An increased government budget deficit means the government needs to borrow more money, which increases the demand for loanable funds. This will cause the supply of loanable funds to shift to the left, as lenders will want to charge a higher interest rate to accommodate the increased demand.

An Increased Government Budget Deficit Causes the ____ Loanable Funds