Which of the Following Statement Regarding the Loanable Funds Market

question 8

Multiple Choice

Which of the following statement regarding the loanable funds market is true?

• A) A decrease in the government budget deficit increases the real interest rate.
• B) An increase in the government budget deficit shifts the supply of loanable funds to the right.
• C) An increase in private saving shifts the supply of loanable funds to the left.
• D) An increase in the government budget deficit shifts the supply of loanable funds to the left.

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Definitions:

RBCs

Short for Red Blood Cells, they are cells in the blood that carry oxygen from the lungs to the body's tissues and carbon dioxide back to the lungs.

Hemoglobin

A red protein responsible for transporting oxygen in the blood of vertebrates.

Erythrocytosis

An abnormal increase in the number of red blood cells in the bloodstream, often enhancing blood viscosity.

Erythrocytes

Also known as red blood cells, they are responsible for carrying oxygen from the lungs to the body's tissues and returning carbon dioxide back to the lungs.