A government budget deficit will have a:
a. positive effect on public saving causing a rightward shift in the supply of loanable funds.
b. positive effect on public saving causing a leftward shift in the supply of loanable funds.
c. negative effect on public saving causing a rightward shift in the supply of loanable funds.
d. negative effect on public saving causing a leftward shift in the supply of loanable funds.
Question 2
If both supply and demand for a good increase, which of the following will definitely happen?
a. Equilibrium price will remain the same
b. Equilibrium price will increase
c. Equilibrium price will decrease
d. Equilibrium quantity will increase
e. Equilibrium quantity will decrease
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