Figure 21-1
-Refer to Figure 21-1.The market is in equilibrium.If the government budget deficit rises,which of the following would you expect to see?
A) The quantity of loanable funds demanded by firms will rise above $120 million.
B) The quantity of loanable funds demanded by firms will fall below $120 million.
C) The budget deficit will have no impact on the quantity of loanable funds demanded by firms.
D) The interest rate will fall below 4 percent.
Correct Answer:
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Q75: Figure 21-1 Q142: The supply of loanable funds has a Q144: A decrease in the real interest rate Q145: The demand for loanable funds has a Q152: If technological change increases the profitability of Q156: Economist Steve Landsburg has pointed out that Q161: An increase in the government budget surplus Q169: An increase in the government budget deficit Q171: Which of the following would occur if Q179: In 2003,Congress passed a tax cut that
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