Refer to Figure 21-6. The market is in equilibrium. If the government budget deficit rises, which of the following would you expect to see?
A) The quantity of loanable funds demanded by firms will fall below $120 million.
B) The interest rate will fall below 4 percent.
C) The quantity of loanable funds demanded by firms will rise above $120 million.
D) The budget deficit will have no impact on the quantity of loanable funds demanded by firms.
A
Economics
You might also like to view...
Ceteris paribus, as real GDP expected growth ________, investment spending ________
A) increases; decreases B) increases; increases C) decreases; increases D) changes; does not usually change
Economics
What role might contests among superstars play in accounting for income inequality?
What will be an ideal response?
Economics