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How Does an Increase in the Canadian Government Budget Deficit

Question 127

Multiple Choice

How does an increase in the Canadian government budget deficit shift the supply of Canadian loanable funds?


A) The supply of loanable funds curve shifts to the right.
B) The supply of loanable funds curve shifts to the left.
C) The supply of loanable funds does not change.
D) The change in the supply of loanable funds is ambiguous.

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