Figure 5.1 -Refer to Figure 5.1.All Else Equal,a Decrease in the Government's

question 19

Multiple Choice

Figure 5.1

-Refer to Figure 5.1.All else equal,a decrease in the government's budget deficit will cause

• A) a shift from S₁ to S₂.
• B) a shift from S₂ to S₁.
• C) a change in the interest rate from r₂ to r₁.
• D) a change in loanable funds from L₂ to L₁.