An Increase in the Budget Deficit Causes Net Capital Outflow

question 56

Multiple Choice

An increase in the budget deficit causes net capital outflow to

• A)rise,because the supply of loanable funds shifts right.
• B)rise,because the demand for loanable funds shifts right.
• C)fall,because the supply of loanable funds shifts left.
• D)fall,because the demand for loanable funds shifts right.

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