Refer to Figure 5.1 for the following questions.
Figure 5.1

-Refer to Figure 5.1. As a result of an increase in the government budget deficit, the ________ for loanable funds will ________, thereby ________ the equilibrium real interest rate and ________ the equilibrium quantity of loanable funds.
A)demand; rise; increasing; decreasing
B)supply; rise; decreasing; increasing
C)demand; fall; decreasing; decreasing
D)supply; fall; increasing; decreasing

Question

Refer to Figure 5.1 for the following questions.
Figure 5.1
 
-Refer to Figure 5.1. As a result of an increase in the government budget deficit, the ________ for loanable funds will ________, thereby ________ the equilibrium real interest rate and ________ the equilibrium quantity of loanable funds.
A)demand; rise; increasing; decreasing 
B)supply; rise; decreasing; increasing 
C)demand; fall; decreasing; decreasing 
D)supply; fall; increasing; decreasing

Quizplus · Accepted Answer

The Answer of Refer to Figure 5.1 for the following questions.
Figure 5.1
 
-Refer to Figure 5.1. As a result of an increase in the government budget deficit, the ________ for loanable funds will ________, thereby ________ the equilibrium real interest rate and ________ the equilibrium quantity of loanable funds.
A)demand; rise; increasing; decreasing 
B)supply; rise; decreasing; increasing 
C)demand; fall; decreasing; decreasing 
D)supply; fall; increasing; decreasing

Refer to Figure 5.1 for the Following Questions