A government budget surplus will shift the ________ curve for loanable funds to the ________ and the equilibrium real interest rate will ________.

Question

Quizplus · Accepted Answer

A government budget surplus means that the government is borrowing less money, which reduces the demand for loanable funds. This will shift the supply curve for loanable funds to the right, resulting in a fall in the equilibrium real interest rate.

A Government Budget Surplus Will Shift the ________ Curve for Loanable