If government finances fiscal policy through additional borrowing, it could affect the loanable funds market by causing

A. an increase in the quantity demanded and an increase in supply for loanable funds.
B. an increase in the demand and an increase in the quantity supplied for loanable funds.
C. an increase in the quantity demanded and an increase in the quantity supplied for loanable funds.
D. an increase in the demand and an increase in supply for loanable funds.


Answer: B

Economics

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Perfectly competitive firms must make all of the following decisions except

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When a market is not in equilibrium:

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Economics

Diminishing marginal utility means that as you consume more of a good, other things constant, the:

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Economics