With an increase in budget deficit, the real interest rate will be:
a. higher, and the quantity of loanable funds demanded for investment will decrease.
b. higher, and the quantity of loanable funds demanded for investment will increase.
c. lower, and the quantity of loanable funds demanded for investment will increase.
d. lower, and the quantity of loanable funds demanded for investment will decrease.

Question

07-06-2024
Business

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With an increase in budget deficit, the real interest rate will be:
a. higher, and the quantity of loanable funds demanded for investment will decrease.
b. higher, and the quantity of loanable funds demanded for investment will increase.
c. lower, and the quantity of loanable funds demanded for investment will increase.
d. lower, and the quantity of loanable funds demanded for investment will decrease.

Sagot :

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