Which of the Following Are Effects of an Increased Budget

question 147

Multiple Choice

Which of the following are effects of an increased budget deficit?

• A)the supply of loanable funds does not change;a higher interest rate reduces private saving
• B)the supply of loanable funds does not change;a higher interest rate raises private saving
• C)at any interest rate the supply of loanable funds is less;a higher interest rate reduces private saving
• D)at any interest rate the supply of loanable funds is less;a higher interest rate raises private saving

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