Suppose the Government Ran a Budget Surplus in 2010 and a Larger

question 43

Multiple Choice

Suppose the government ran a budget surplus in 2010 and a larger surplus in 2011.The loanable funds model would predict that,as a result of the increase in the surplus,

• A)both the government debt and interest rates increased between 2010 and 2011.
• B)both the government debt and interest rates decreased between 2010 and 2011.
• C)the government debt increased and interest rates decreased between 2010 and 2011.
• D)the government debt decreased and interest rates increased between 2010 and 2011.

---

Definitions:

Frequency Distribution

A summary of data showing the number of observations (frequency) for each value or range of values.

B Grade

A classification often used in educational settings to denote a level of academic performance above average but below the highest level of excellence.

Frequency Distribution

A summary of data showing the number (frequency) of observations in each of various non-overlapping categories or bins.

Cumulative Percent

The percentage that represents the total number of cases or instances up to a certain threshold.