Solved

Suppose the Government Ran a Budget Surplus in 2008 and a Larger

Question 358

Multiple Choice

Suppose the government ran a budget surplus in 2008 and a larger surplus in 2009.The loanable funds model would predict that,as a result of the increase in the surplus,


A) both the government debt and interest rates increased between 2008 and 2009.
B) both the government debt and interest rates decreased between 2008 and 2009.
C) the government debt increased and interest rates decreased between 2008 and 2009.
D) the government debt decreased and interest rates increased between 2008 and 2009.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents