An increase in the budget surplus?

3109EconomicsMedium

AShifts the supply of loanable funds to the left and increase the real interest rate

BShifts the demand for loanable funds to the left and reduces the real interest rate

CShifts the demand for loanable funds to the right and increases the real interest rate.

DShift the supply of loanable funds to the right and reduces the real interest rate.

Correct answer

D. Shift the supply of loanable funds to the right and reduces the real interest rate.

Explanation

The correct answer is Shift the supply of loanable funds to the right and reduces the real interest rate..

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