Asked by
Matthew Chong
on Oct 25, 2024
Verified
When the government runs a large deficit,
A) the supply of loanable funds will shift rightward.
B) the supply of loanable funds will shift leftward.
C) the demand for loanable funds will shift rightward.
D) the demand for loanable funds will shift leftward.
E) taxes must rise.
Government Deficit
A situation where a government's expenditures exceed its revenues.
- Learn about the factors responsible for shifts in the availability of loanable funds and demand for these funds, and how these shifts alter interest rates.
Verified Answer
EM
Learning Objectives
- Learn about the factors responsible for shifts in the availability of loanable funds and demand for these funds, and how these shifts alter interest rates.
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