Which of the Following Would an Increase in the Budget

question 147

Multiple Choice

Which of the following would an increase in the budget deficit most likely cause?

• A)a shortage of loanable funds at the original interest rate, which would lead to falling interest rates
• B)a surplus of loanable funds at the original interest rate, which would lead to rising interest rates
• C)a shortage of loanable funds at the original interest rate, which would lead to rising interest rates
• D)a surplus of loanable funds at the original interest rate, which would lead to falling interest rates

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