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.
Correct Answer:

Verified
Correct Answer:
Verified
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