If the government begins to run a larger budget deficit, the demand for loanable funds ________ and the real interest rate ________.
A) decreases; falls
B) decreases; rises
C) increases; rises
D) increases; falls
E) increases; rises or falls depending on the change in the supply of loanable funds
Correct Answer:
Verified
Q114: The tendency for private saving to increase
Q115: The crowding-out effect refers to
A)government spending crowding
Q116: If China's government increases its budget surplus,
Q117: Use the table below to answer the
Q118: A government budget deficit _ the demand
Q120: The tendency for a government budget deficit
Q121: Use the table below to answer the
Q122: If the Ricardo-Barro effect occurs, _ in
Q123: Table 23.3.5 Q124: According to the Ricardo-Barro effect,
A)government deficits raise
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