If Canada Goes from a Large Budget Deficit to a Small

question 159

Multiple Choice

If Canada goes from a large budget deficit to a small budget deficit,it will

• A)increase private saving and so shift the supply of loanable funds right.
• B)increase investment and so shift the demand for loanable funds right.
• C)increase public saving and so shift the supply of loanable funds right.
• D)reduce national saving and shift the supply left.

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