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A. A decrease in the government budget deficit increase the real interest rate
B. An increase in the government budget deficit shifts the supply of loanable funds to the right
C. An increase in private saving shifts the supply of loanable funds to the left
D. An increase in the government budget deficit shifts the supply of loanable funds to the left

Correct Answer: An increase in the government budget deficit shifts the supply of loanable funds to the left

Last Updated: June 11, 2019