Figure 5.1 -Refer to Figure 5.1.All Else Equal,a Decrease in the Government's

Multiple Choice

Figure 5.1

-Refer to Figure 5.1.All else equal,a decrease in the government's budget deficit will cause

A) a shift from S₁ to S₂.
B) a shift from S₂ to S₁.
C) a change in the interest rate from r₂ to r₁.
D) a change in loanable funds from L₂ to L₁.