Multiple Choice
Which of the following are effects of an increased budget deficit?
A) the supply of loanable funds does not change;a higher interest rate reduces private saving
B) the supply of loanable funds does not change;a higher interest rate raises private saving
C) at any interest rate the supply of loanable funds is less;a higher interest rate reduces private saving
D) at any interest rate the supply of loanable funds is less;a higher interest rate raises private saving
Correct Answer:

Verified
Correct Answer:
Verified
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