How does a government budget surplus or deficit influence the loanable funds market?

What will be an ideal response?


A government budget surplus adds to the supply of loanable funds. A government budget deficit adds to the demand for loanable funds.

Economics

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Which type of policy raises the most revenue for the government?

A) tariff B) quota C) voluntary export restraints D) If they are set at the same level, all of the above raise the same amount of revenue. E) None of the above answers is correct because none of the policies raises revenue for the government.

Economics

Firms in an oligopoly often do not collude with each other because ________

A) collusion lowers profit B) collusion increases the cost of production C) collusion is illegal D) collusion increases competition

Economics

Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $4 and the wage rate is $70 per day, how many workers should Winnie employ to maximize his profit?

A) 1 B) 2 C) 3 D) 4

Economics

Which of the following questions is of most interest for MACROECONOMISTS?

A) Why is there inflation? B) Why does the steel industry want tariffs? C) What is the appropriate stance of antitrust policy? D) Why do foreigners immigrate to the United States?

Economics