Multiple Choice
Suppose that Peru has a budget surplus, and then goes into deficit. Which statement best predicts the consequences?
A) National saving would increase, and Peru's supply of loanable funds would shift to the left.
B) National saving would increase, and Peru's demand for loanable funds would shift to the right.
C) National saving would decrease, and Peru's supply of loanable funds would shift to the left.
D) National saving would decrease, and Peru's demand for loanable funds would shift to the right.
Correct Answer:
Verified
Correct Answer:
Verified
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