Suppose the Government Ran a Budget Surplus in 2010 and a Larger

question 43

Multiple Choice

Suppose the government ran a budget surplus in 2010 and a larger surplus in 2011.The loanable funds model would predict that,as a result of the increase in the surplus,

• A)both the government debt and interest rates increased between 2010 and 2011.
• B)both the government debt and interest rates decreased between 2010 and 2011.
• C)the government debt increased and interest rates decreased between 2010 and 2011.
• D)the government debt decreased and interest rates increased between 2010 and 2011.

---

Definitions:

Motility

The ability of an organism or fluid to move spontaneously and actively, consuming energy in the process.

Hormone Release

The process by which hormones are secreted from glands and then enter the bloodstream to regulate various physiological functions.

Enteric Plexus

A network of neurons located in the gastrointestinal tract walls that governs the function of the gastrointestinal system, often referred to as the "second brain."

Myenteric Plexus

A network of neurons located in the walls of the gastrointestinal tract, involved in the control of muscle contractions and gut motility.