The market is in equilibrium. If the government budget deficit rises, which of the following would you expect to see? A. The interest rate will fall below 4 percent. B. The quantity of loanable funds demanded by firms will rise above $120 million. C. The quantity of loanable funds demanded by firms will fall below $120 million. D. The budget deficit will have no impact on the quantity of loanable funds demanded by firms.
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The market is in equilibrium. If the government budget deficit rises, which of the following would y...
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