Based on the graph showing the effects of a government budget deficit, how would a budget deficit influence the equilibrium quantity of saving and investment?





a. It would create a higher equilibrium quantity of saving and investment.

b. It would create a lower equilibrium quantity of saving and investment.

c. It would have no influence on the equilibrium quantity of saving and investment.

d. It would drive the equilibrium quantity of saving and investment to zero.


b. It would create a lower equilibrium quantity of saving and investment.

Economics

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