Multiple Choice
Refer to the following graph to answer the following questions: 
-Assuming the figure represents the market for loanable funds,which of the following would represent the government running a larger budget deficit?
A) a shift from line 1 to line 4
B) a shift from line 4 to line 1
C) a shift from line 2 to line 3
D) a shift from line 3 to line 2
E) a new shortage of loanable funds represented by the distance from C to D
Correct Answer:
Verified
Correct Answer:
Verified
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