If the federal government eliminates its budget deficit and runs a surplus, the effect is:
Question 8 options:
An increase in the demand for loanable funds and an increase in interest rates. | |
A decrease in the demand for loanable funds and a decrease in interest rates. | |
An increase in the supply of savings and a decrease in interest rates. | |
A decrease in the supply of savings and an increase in interest rates. |



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