Figure 26-3.The figure shows two demand-for-loanable-funds curves and two supply-of-loanable-funds curves.
-Refer to Figure 26-3.Which of the following movements shows the effects of the government going from a budget surplus to a budget deficit?

Question

Figure 26-3.The figure shows two demand-for-loanable-funds curves and two supply-of-loanable-funds curves. 
-Refer to Figure 26-3.Which of the following movements shows the effects of the government going from a budget surplus to a budget deficit?

Quizplus · Accepted Answer

A movement from Point A to Point B represents a shift from a budget surplus to a budget deficit, which typically increases interest rates and reduces investment.