Q
Which of the following statement regarding the loanable funds market is true ?
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A
A. A decrease in the government budget deficit increase the real interest rate
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B
B. An increase in the government budget deficit shifts the supply of loanable funds to the right
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C
C. An increase in private saving shifts the supply of loanable funds to the left
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D
D. An increase in the government budget deficit shifts the supply of loanable funds to the left
Correct Answer:
D. D. An increase in the government budget deficit shifts the supply of loanable funds to the left
