Other Things Being Equal, What Is the Effect of Deficit

question 29

Multiple Choice

Other things being equal, what is the effect of deficit spending on credit markets?

• A) Both the demand for credit and the supply of credit will increase.
• B) Both the demand for credit and the supply of credit will decrease.
• C) The demand for credit increases while the supply of credit remains constant.
• D) The supply of credit will increase while the demand for credit remains the same.

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Definitions:

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Customers Table

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