An increase in the government budget deficit shifts the demand for loanable funds to the right

If the price of a product falls, that product becomes cheaper and people will want to purchase more of it in place of other goods. This statement best describes:

A) the income effect. B) the substitution effect. C) a complementary good. D) an inferior good.

Last year in the country of Nerf imports equaled exports. Nerf's GDP was $500 million, its consumer expenditure was $380 million, and its investment was $20 million. Nerf's government expenditure on goods and services were ________

A) $100 million B) $900 million C) $500 million D) zero