Suppose a Country Has a Larger Increase in Debt in 2014

question 101

Multiple Choice

Suppose a country has a larger increase in debt in 2014 than it had in 2013.Then other things the same,

• A)the supply of loanable funds shifts rightward and the interest rate falls.
• B)the supply of loanable funds shifts leftward and the interest rate rises.
• C)the demand for loanable funds shifts leftward and the interest rate falls.
• D)the demand for loanable funds shifts rightward and the interest rate rises.

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