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Economics
MEDIUM
ENGLISH
Economics
An increase in the budget surplus ?
A
Shifts the supply of loanable funds to the left and increase the real interest rate
Option A
Shift the supply of loanable funds to the right and reduces the real interest rate.
Correct answer
C
Shifts the demand for loanable funds to the right and increases the real interest rate.
Option C
D
Shifts the demand for loanable funds to the left and reduces the real interest rate
Option D
Correct answer: B
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