An increase in the government budget deficit will shift the ________ curve for loanable funds to the ________ and the equilibrium real interest rate will ________
A) supply; right; fall
B) supply; left; rise
C) demand; right; rise
D) demand; left; fall
Answer: B
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Ted's Pancake Kitchen suffers a short-run loss. When should Ted decide to shut down rather than continue to produce?
A) if his Kitchen's revenue is less than its fixed costs B) if his Kitchen's revenue is less than its total costs C) if his Kitchen's revenue is less than its variable costs D) if his Kitchen's revenue is less than its explicit costs
What is the assumption underlying public-choice theory?
A) Elected officials believe in cooperating with one another and they seek to avoid competition among themselves. B) The costs and benefits of being efficient are the same whether one is in the private sector or in the public sector. C) Individuals act within the political process to improve their own individual well-being. D) Resources in the public sector are not scarce.
A rise in bond prices would cause the price of a dollar to rise.
a. true b. false
Which of the following is least likely to result in inflation?
a. A drought in California that causes farm production to fall. b. The government printing money to finance deficits. c. A reduction in consumer confidence. d. Rising instability in oil-producing nations.