An Increase in the Budget Deficit That Causes the Government

question 38

Multiple Choice

An increase in the budget deficit that causes the government to increase its borrowing shifts the

• A) supply of loanable funds to the right.
• B) demand for loanable funds to the left.
• C) demand for loanable funds to the right.
• D) supply of loanable funds to the left.

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Definitions:

Fractions

Fractions represent a part of a whole or, more generally, any number of equal parts.

Lowest Terms

Refers to a fraction that has been reduced to its simplest form, where the numerator and denominator are as small as possible and have no common factors other than 1.

Fractions

Mathematical expressions representing parts of whole numbers, typically made up of a numerator and a denominator.

Pounds

A unit of currency used in the United Kingdom and other British territories, also known as GBP (Great Britain Pounds).