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When the Government Is Running a Budget Surplus

Question 113

Multiple Choice

When the government is running a budget surplus,


A) the demand for loanable funds includes only business investment spending
B) the supply of loanable funds includes only business investment spending
C) the loanable funds market cannot be in equilibrium
D) the supply of loanable funds includes only household saving
E) there will be an excess supply of loanable funds

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