If the government runs a budget surplus, then the _____ loanable funds shifts to the _____.

Question

Quizplus · Accepted Answer

When the government runs a budget surplus, it means that it is spending less than it is earning in revenue. This often results in the government either reducing its borrowing or increasing its savings, both of which increase the amount of funds available for lending. Therefore, the supply of loanable funds shifts to the right.

If the Government Runs a Budget Surplus, Then the _____