How Does an Increase in the Canadian Government Budget Deficit

question 143

Multiple Choice

How does an increase in the Canadian government budget deficit change the graph representing the Canadian market for loanable funds?

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

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Definitions:

Incentive

A factor, often financial, that motivates individuals or organizations to perform certain actions or behave in a desired way.

Long Run

A period in economics sufficient for all adjustments to be made, including physical capital and not just prices.

Licenses

Official permits to own or do something, typically issued by a government authority.

Central Park

A large urban park in New York City, known for its lush landscapes, walking paths, and cultural attractions.