What Is Most Likely to Happen If Canada Increases Its

Multiple Choice

What is most likely to happen if Canada increases its budget deficit?

A) Private saving will decrease and so shift the supply of loanable funds left.
B) Investment will decrease and so shift the demand for loanable funds left.
C) Public saving will decrease and so shift the supply of loanable funds left.
D) Private saving will increase and so shift the supply of loanable funds to the right.