When the U

question 60

Multiple Choice

When the U.S. government runs a deficit, the savings in the market for loanable funds shifts:

• A) left, increasing interest rates and decreasing domestic investment and NCO.
• B) left, decreasing interest rates and increasing domestic investment and NCO.
• C) right, decreasing interest rates and increasing domestic investment and NCO.
• D) right, increasing interest rates, and increasing domestic investment and NCO.

---

Definitions:

Subjective Method

A method of assigning probabilities on the basis of judgment.

Probabilities

Measures of the likelihood that an event will occur, expressed as a number between 0 and 1.

Probability Values

Numerical values that represent the likelihood of the occurrence of a specific event or outcome.

Mutually Exclusive

Two or more events that cannot happen at the same time; the occurrence of one event precludes the occurrence of the other(s).