Suppose That Chile Has a Budget Surplus,and Then Goes into Deficit.Which

question 177

Multiple Choice

Suppose that Chile has a budget surplus,and then goes into deficit.Which statement best predicts the consequences?

• A) National saving would increase,and Chile's supply of loanable funds would shift to the left.
• B) National saving would increase,and Chile's demand for loanable funds would shift to the right.
• C) National saving would decrease,and Chile's supply of loanable funds would shift to the left.
• D) National saving would decrease,and Chile's demand for loanable funds would shift to the right.

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