An increase in the budget deficit will?

3777EconomicsMedium

Alower the real interest rate and increase the quantity of loaable funds demanded for investment

Braise the real interest rate and decrease the quantity of loanable funds demanded for investment

Craise the real interest rate and increase the quantity of loandable funds demanded for investment

Dlower the real interest rate and decrease the quantity of loanable funds demanded for investment

Correct answer

B. raise the real interest rate and decrease the quantity of loanable funds demanded for investment

Explanation

The correct answer is raise the real interest rate and decrease the quantity of loanable funds demanded for investment.

Related Economics MCQs

View all 4520 MCQs →

MCQ #3779

An infant,s cries for help________?

Ans: are instrumental in cementing the mother-infant bondingRead →

MCQ #3775

A competitive profit-maximizing firm should hire workers up to the point where?

Ans: the value of the marginal product of labor equals the wageRead →

MCQ #3780

Central bank’s rate of lending to commercial banks is called?

Ans: Control rateRead →

MCQ #3774

The parable of Riding a Switchback suggest that stabilizing policy?

Ans: is stimulating or contracting the economy at the wrong timesRead →

MCQ #387

For the United States suppose the annual interest rate on government securities equals 8 percent while the annual inflation rate equals 4 percent, For Switzerland the annual interest rate on government securities equal 10 percent while the annual inflation rate equals 7 percent the above variables would cause investment funds to flow from?

Ans: Switzerland to the United States causing the franc to depreciateRead →

MCQ #1517

Which of the following is not an assumption of Schumpeter’s stationary state?

Ans: An economy below full employmentRead →