Solved

An Increase in the Budget Deficit Makes Domestic Interest Rates

Question 4

Multiple Choice

An increase in the budget deficit makes domestic interest rates


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

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions