Which of the following are effects of an increased budget deficit?
a. the supply of loanable funds does not change; a higher interest rate reduces private saving
b. the supply of loanable funds does not change; a higher interest rate raises private saving
c. at any interest rate the supply of loanable funds is less; a higher interest rate reduces private saving
d. at any interest rate the supply of loanable funds is less; a higher interest rate raises private saving
d
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If currencies around the world are based on the gold standard, and Japan raises the amount of gold for which the yen will trade, then holding all else constant,
A) the value of U.S. exports to Japan in terms of the yen will increase. B) the value of the yen relative to the dollar will stay constant. C) the yen will appreciate against the dollar. D) the yen will depreciate against the dollar.
Explain what should happen to the demand curve of monopolistically competitive firms as consumers increasingly perceive their products to be more like commodities. What industrial structure does this lead to?
What will be an ideal response?