A rise in the budget deficit
a. shifts both the supply of loanable funds in the market for loanable funds and the supply of dollars in the market for foreign-currency exchange right.
b. shifts both the supply of loanable funds in the market for loanable funds and the supply of dollars in the market for foreign-currency exchange left.
c. shifts both the demand for loanable funds in the market for loanable funds and the demand for dollars in the market for foreign-currency exchange right.
d. shifts both the demand for loanable funds in the market for loanable funds and the demand for dollars in the market for foreign-currency exchange left.
b
You might also like to view...
The quantity of money decreases if
A) banks loan all excess reserves. B) the Treasury Department issues fewer government securities. C) the desired reserve ratio decreases. D) the Fed buys U.S. government securities. E) the currency drain ratio increases.
Assume that, over time, engineers develop new residential furnaces that can run on different types of fuels, e.g., natural gas, electricity, propane, and fuel oil, simply by flipping a switch on the furnace
How would this technological change affect the price elasticity of demand for natural gas? Why?