If the Government Budget Deficit Increases, Which Curve in the Market

question 171

Essay

If the government budget deficit increases, which curve in the market for loanable funds shifts, which direction does it shift, and what happens to the interest rate?

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Definitions:

Compound

A substance formed from two or more chemical elements that have bonded together.

Secondary Amine

An amine where the nitrogen atom is bonded to two alkyl or aryl groups and one hydrogen atom.

Compounds

Substances formed from two or more chemical elements, held together by chemical bonds.

Systematic Name

The official nomenclature of a chemical compound that provides information about its structure.