Q
An increase in the budget surplus ?
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A
A. Shifts the supply of loanable funds to the left and increase the real interest rate
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B
B. Shift the supply of loanable funds to the right and reduces the real interest rate.
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C
C. Shifts the demand for loanable funds to the right and increases the real interest rate.
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D
D. Shifts the demand for loanable funds to the left and reduces the real interest rate
Correct Answer:
B. B. Shift the supply of loanable funds to the right and reduces the real interest rate.
