2852EconomicsMedium
An increase in the budget deficit that causes the government to increase its borrowing?
AShifts the supply of loanable funds to the right
BShift the demand for loanable funds to the right
CShift the supply of loanable funds to the left
DShift the demand for loandbale funds to the left
Correct answer
C. Shift the supply of loanable funds to the left
Explanation
The correct answer is Shift the supply of loanable funds to the left.