Multiple Choice
Which of the following statement regarding the loanable funds market is true?
A) A decrease in the government budget deficit increases the real interest rate.
B) An increase in the government budget deficit shifts the supply of loanable funds to the right.
C) An increase in private saving shifts the supply of loanable funds to the left.
D) An increase in the government budget deficit shifts the supply of loanable funds to the left.
Correct Answer:
Verified
Correct Answer:
Verified
Q3: An increase in the government's budget deficit
Q5: Households make their savings available to borrowers
Q6: An increase in UK net capital outflow
Q7: If a country's government increases its budget
Q9: Suppose that UK citizens start saving more.
Q10: If the EU raises its tariff on
Q11: Which of the following could increase the
Q12: The link between the loanable funds market
Q13: Capital flight<br>A) Decreases a country's net exports
Q49: State what,if anything,each of the following does