Real interest rate 6%-- 5 4 3 2 1 0 30 Select one: O O 60 90 120 150 a. supply; rise; decreasing; increasing b. supply; fall; increasing; decreasing c. demand; fall; decreasing; decreasing d. demand; rise; increasing; decreasing 180 ន D will. Refer to Figure 10-6. The loanable funds market is in equilibrium, as shown in the figure above. As a result of an increase in the government budget deficit, the thereby______ the equilibrium real interest rate and _ the equilibrium quantity of loanable funds. Quantity of loanable funds (millions of dollars) for loanable funds

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Figure 10-6
Real
interest
rate
6%
5
4
3
2
1
0
30
Select one:
O
O
O
O
60
90
_____
120
150
a. supply; rise; decreasing; increasing
b. supply; fall; increasing; decreasing
c. demand; fall; decreasing; decreasing
d. demand; rise; increasing; decreasing
180
will
Refer to Figure 10-6. The loanable funds market is in equilibrium, as shown in the figure above. As a result of an increase in the government budget deficit, the
thereby the equilibrium real interest rate and the equilibrium quantity of loanable funds.
S
Quantity of
loanable funds
(millions of dollars)
for loanable funds
Transcribed Image Text:Figure 10-6 Real interest rate 6% 5 4 3 2 1 0 30 Select one: O O O O 60 90 _____ 120 150 a. supply; rise; decreasing; increasing b. supply; fall; increasing; decreasing c. demand; fall; decreasing; decreasing d. demand; rise; increasing; decreasing 180 will Refer to Figure 10-6. The loanable funds market is in equilibrium, as shown in the figure above. As a result of an increase in the government budget deficit, the thereby the equilibrium real interest rate and the equilibrium quantity of loanable funds. S Quantity of loanable funds (millions of dollars) for loanable funds
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