Everything Else Equal, an Increase in the Government Budget Deficit

question 16

Multiple Choice

Everything else equal, an increase in the government budget deficit would:
I. Increase the government's demand for funds
II. Shift the demand curve for funds to the left
III. Increase the interest rate in the economy

• A) II only
• B) I and II only
• C) I and III only
• D) I, II, and III