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If a Country Went from a Government Budget Deficit to a Surplus

Question 106

Multiple Choice

If a country went from a government budget deficit to a surplus, which statement would best predict the consequences?


A) National saving would increase, shifting the supply of loanable funds right.
B) National saving would increase, shifting the supply of loanable funds left.
C) National saving would decrease, shifting the demand for loanable funds right.
D) National saving would decrease, shifting the demand for loanable funds left.

Correct Answer:

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