If the government budget deficit increases, which curve in the market for loanable funds shifts, which direction does it shift, and what happens to the interest rate?
The supply of loanable funds shifts left. The interest rate rises.
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The main item in the current account balance is
A) net interest income. B) net transfers. C) net exports. D) net taxes.
A vertical long-run aggregate-supply curve represents
a) both the classical dichotomy and monetary neutrality. b) the classical dichotomy but not monetary neutrality. c) neither the classical dichotomy nor monetary neutrality. d) monetary neutrality but not the classical dichotomy.
If the Federal Reserve wished to engage in expansionary monetary policy, it could
A. raise the reserve ratio. B. raise the Federal Funds rate target. C. sell government debt. D. lower the primary credit rate.
If it is cheaper in the long-run to use a new metal plow that lasts a long time than an inferior wooden plow that needs to be replaced often, then this is an example of:
A. A capital-using technology B. A capital-saving technology C. Capital consumption D. Private capital flows