An increase in the budget deficit would cause a
a. shortage of loanable funds at the original interest rate, which would lead to falling interest rates.
b. surplus of loanable funds at the original interest rate, which would lead to rising interest rates.
c. shortage of loanable funds at the original interest rate, which would lead to rising interest rates.
d. surplus of loanable funds at the original interest rate, which would lead to falling interest rates.
c
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When an insurance company makes a direct loan to a firm, the loan is known as
A) a private placement. B) a commercial paper. C) an account receivable. D) an account payable.
Which of the following laws increased competition among financial institutions and gave the Fed greater control over nonmember banks?
a. The Federal Reserve Act. b. The Equal Credit Opportunity Act. c. The Monetary Control Act. d. The Thrift Bailout Bill.