Figure 8-3. The figure shows two demand-for-loanable-funds curves and two supply-of-loanable-funds curves.

-Refer to Figure 8-3. Which of the following movements shows the effects of the government going from a budget deficit to a budget surplus?

Question

Figure 8-3. The figure shows two demand-for-loanable-funds curves and two supply-of-loanable-funds curves.
 
-Refer to Figure 8-3. Which of the following movements shows the effects of the government going from a budget deficit to a budget surplus?

Quizplus · Accepted Answer

A movement from Point B to Point A indicates a shift from a budget deficit to a budget surplus, as it typically represents a reduction in government borrowing and an increase in savings.