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Question #49097

An increase in the budget surplus ?

Options:

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: An increase in the budget surplus Shift the supply of loanable funds to the right and reduces the real interest rate..

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