MCQOPTIONS
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MCQOPTIONS
| 1. |
An increase in the budget surplus ? |
| A. | Shifts the supply of loanable funds to the left and increase the real interest rate |
| B. | Shift the supply of loanable funds to the right and reduces the real interest rate. |
| C. | Shifts the demand for loanable funds to the right and increases the real interest rate. |
| D. | Shifts the demand for loanable funds to the left and reduces the real interest rate |
| Answer» C. Shifts the demand for loanable funds to the right and increases the real interest rate. | |