Figure 14-6
-Refer to Figure 14-6.The loanable funds market is in equilibrium,as shown in the figure above.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
Correct Answer:
Verified
Q143: An increase in public saving has what
Q144: A decrease in the real interest rate
Q155: Figure 14-6 Q156: Economist Steve Landsburg has pointed out that Q157: An increase in government purchases will Q166: How does a decrease in the tax Q167: An increase in the real interest rate Q170: Use the equations for public and private Q171: In an open economy,the relationship between GDP Q178: Explain why increasing the government budget deficit
A)increase public
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