If a Country Increases Its Government Budget Deficit,the

question 190

Multiple Choice

If a country increases its government budget deficit,the

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

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Definitions:

Opportunity Cost

Signifies the advantages that a person, investor, or company forgoes by selecting one option instead of another.

Tables

Arrangements of data in rows and columns that systematically display information.

Comparative Advantage

The ability of an individual, firm, or country to produce a certain good at a lower opportunity cost than its trading partners.

Total Output

Total output refers to the total value of all goods and services produced in an economy over a specific period.