A Government Budget Surplus Occurs, Which ________ Loanable Funds

question 120

Multiple Choice

A government budget surplus occurs, which ________ loanable funds. The real interest rate ________, household saving ________, and investment ________.

• A)increases the demand for; rises; increases; decreases
• B)increases the supply of; falls; increases; decreases
• C)increases the supply of; falls; decreases; increases
• D)decreases the demand for; falls; decreases; increases
• E)decreases the supply of; decreases; decreases; increases

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Definitions:

Home Permits

Refers to the official approvals or licenses issued by local government agencies allowing for the construction, renovation, or major alteration of a house or residential building.

Resellers

Businesses that purchase products from manufacturers or wholesalers and then sell them to consumers or other businesses.

Reseller

Marketing intermediary that resells manufactured products without significantly altering their form.

Buying Center

The group of people typically responsible for the buying decisions in large organizations.