Real interest rate 6%-- 5 4 3 2 1 0 30 Select one: O O 60 90 120 150 a. supply; rise; decreasing; increasing b. supply; fall; increasing; decreasing c. demand; fall; decreasing; decreasing d. demand; rise; increasing; decreasing 180 ន D will. Refer to Figure 10-6. The loanable funds market is in equilibrium, as shown in the figure above. As a result of an increase in the government budget deficit, the thereby______ the equilibrium real interest rate and _ the equilibrium quantity of loanable funds. Quantity of loanable funds (millions of dollars) for loanable funds
Real interest rate 6%-- 5 4 3 2 1 0 30 Select one: O O 60 90 120 150 a. supply; rise; decreasing; increasing b. supply; fall; increasing; decreasing c. demand; fall; decreasing; decreasing d. demand; rise; increasing; decreasing 180 ន D will. Refer to Figure 10-6. The loanable funds market is in equilibrium, as shown in the figure above. As a result of an increase in the government budget deficit, the thereby______ the equilibrium real interest rate and _ the equilibrium quantity of loanable funds. Quantity of loanable funds (millions of dollars) for loanable funds
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Savings,investment And The Financial System
Section: Chapter Questions
Problem 4CQQ
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