Multiple Choice
An increase in the budget deficit will
A) raise the real interest rate and decrease the quantity of loanable funds demanded for investment.
B) lower the real interest rate and increase the quantity of loanable funds demanded for investment.
C) raise the real interest rate and increase the quantity of loanable funds demanded for investment.
D) lower the real interest rate and decrease the quantity of loanable funds demanded for investment.
Correct Answer:
Verified
Correct Answer:
Verified
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