Q
An increase in the budget deficit will ?
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A
A. Raise the real interest rate and decrease the quantity of loanable funds demanded for investment
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B
B. Lower the real interest rate and increase the quantity of loaable funds demanded for investment
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C
C. Raise the real interest rate and increase the quantity of loandable funds demanded for investment
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D
D. Lower the real interest rate and decrease the quantity of loanable funds demanded for investment
Correct Answer:
A. A. Raise the real interest rate and decrease the quantity of loanable funds demanded for investment