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When a Government Raises Its Budget Deficit, Then That Country's

Question 173

Multiple Choice

When a government raises its budget deficit, then that country's


A) national saving rises, so its supply of loanable funds shifts right.
B) national saving falls, so its supply of loanable funds shifts left.
C) national saving rises, so its demand for loanable funds shifts right.
D) national saving falls, so its demand for loanable funds shifts left.

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