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An Increase in the Budget Deficit Causes Net Capital Outflow

Question 56

Multiple Choice

An increase in the budget deficit causes net capital outflow to


A) rise,because the supply of loanable funds shifts right.
B) rise,because the demand for loanable funds shifts right.
C) fall,because the supply of loanable funds shifts left.
D) fall,because the demand for loanable funds shifts right.

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