If a country raises its budget deficit then
a. both its supply of and demand for loanable funds shift.
b. its supply of but not its demand for loanable funds shifts.
c. its demand for but not its supply of loanable funds shifts.
d. neither its supply nor its demand for loanable funds shift.
b
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Immigrants tend to choose countries closer to their country of origin because:
A. bordering countries always have high wage rates. B. there are fewer beaten paths to nearby countries, and therefore better prospects of finding a good job. C. neighboring countries usually speak the same language. D. migration costs tend to be directly related to distance from the country of origin.
What important lesson did American economists learn in the 1980s and again in 2001–2003?
A. Large tax cuts can lead to a balance of trade surplus. B. Large government budget deficits can crowd out consumption. C. Large government budget deficits can bankrupt the nation. D. Large government budget deficits can crowd out net exports.