If the Federal Government Needs to Borrow Additional Funds, This

question 65

Multiple Choice

If the federal government needs to borrow additional funds, this borrowing reflects a(n) ____ in the supply of loanable funds and a(n) ____ in the demand for loanable funds. ​

• A)increase; no change
• B)decrease; no change
• C)no change; increase
• D)no change; decrease

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Definitions:

Upper Quintile

Refers to the top 20 percent of the population or distribution in terms of income, wealth, or another statistical measure.

Income

The financial earnings received by an individual or entity, typically in the form of wages, salaries, or investments.

Liberal Solution

denotes a resolution to a problem that emphasizes freedom, democracy, and the protection of individual rights.

Welfare Dependency

A situation where individuals or families rely extensively on government assistance programs for their income over long periods.