If we were to change the interpretation of the term "loanable funds" in such a way that government budget deficits would affect the demand for loanable funds, rather than the supply of loanable funds, then

a. crowding out would not be a consequence of an increase in the budget deficit.
b. higher interest rates would not be a consequence of an increase in the budget deficit.
c. an increase in the budget deficit would cause the demand for loanable funds to decrease.
d. we would be making only a semantic change in how we analyze the effects of government budget deficits.


d

Economics

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What will be an ideal response?

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An increase in inflation in the United States relative to the rate in France would make:

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What will be an ideal response?

Economics