A government budget surplus occurs, which ________ loanable funds. The real interest rate ________, household saving ________, and investment ________.
A) increases the demand for; rises; increases; decreases
B) increases the supply of; falls; increases; decreases
C) increases the supply of; falls; decreases; increases
D) decreases the demand for; falls; decreases; increases
E) decreases the supply of; decreases; decreases; increases
Correct Answer:
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