Figure 16.3 -Refer to Figure 16.3.As a Result of an Increase in an Increase

question 63

Multiple Choice

Figure 16.3
-Refer to Figure 16.3.As a result of an increase in the government budget deficit,the ________ for loanable funds will ________,thereby ________ the equilibrium real interest rate and ________ the equilibrium quantity of loanable funds.

• A) demand; rise; increasing; decreasing
• B) supply; rise; decreasing; increasing
• C) demand; fall; decreasing; decreasing
• D) supply; fall; increasing; decreasing

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Definitions:

Elimination

The process of removing or excluding something or someone from consideration or from a particular set or group.

Domestic Output

The aggregate value of every product and service created within the confines of a nation during a specific period.

Redistribution

The reallocation of income, wealth, or resources among individuals or groups in a society.

Economic Discrimination

Unfair treatment of individuals based on economic factors, such as income, wealth, or consumption patterns.