Multiple Choice
In 2008, Australia had a government budget surplus of $21.7 billion. This budget surplus shifts the demand for loanable funds curve
A) rightward and creates a crowding-out effect.
B) leftward and lowers the real interest rate.
C) leftward and creates a crowding-out effect.
D) rightward and creates a Ricardo-Barro effect.
Correct Answer:
Verified
Correct Answer:
Verified
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