If Japan Goes from a Small Budget Deficit to a Large

question 175

Multiple Choice

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

• A)private saving and so shift the supply of loanable funds left.
• B)investment and so shift the demand for loanable funds left.
• C)public saving and so shift the supply of loanable funds left.
• D)None of the above is correct.

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