If at some interest rate desired investment is $400 billion, desired private saving is $600 billion, and the budget deficit is $300 billion, is there a surplus or a shortage in the market for loanable funds? What does this imply would happen to interest rates?

Assume that seigniorage and the government's primary deficit are both zero. A change in the debt-to-GDP ratio depends on just

A) the rate of inflation and total factor productivity. B) the growth rate of real GDP and the real interest rate. C) the growth rate of the money supply and the nominal interest rate. D) the growth rate of nominal GDP and the rate of inflation.

The government's budget deficit is financed by some combination of all of the following except

A) private saving. B) transfer payments. C) net exports. D) reduced private investment.