The federal government's demand for loanable funds is ____. If the budget deficit is expected to increase, the federal government's demand for loanable funds would ____.
A) interest-elastic; decrease
B) interest-elastic; increase
C) interest-inelastic; increase
D) interest-inelastic; decrease
Correct Answer:
Verified
Q5: Which of the following is likely to
Q5: If the real interest rate was negative
Q6: At any given point in time, households
Q6: The Fisher effect states that the
A)nominal
Q8: The quantity of loanable funds supplied is
Q9: Businesses demand loanable funds to
A) finance installment
Q10: The equilibrium interest rate
A) equates the aggregate
Q11: If interest rates are _, _ projects
Q12: The required return to implement a given
Q17: Other things being equal, foreign governments and
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