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:

Question of Fact

An issue to be decided by the jury or judge regarding the reality of events or existence of facts in a trial.

Question of Law

A point concerning the interpretation or application of laws, as opposed to questions of fact in legal cases.

Standard of Proof

The level of certainty and the degree of evidence necessary for a judge or jury to make a decision in a legal case.

Criminal Matter

A legal case or issue that involves violations of laws that protect the public welfare and are enforced by the state.