A government budget surplus _______. A. increases the supply of loanable funds B. raises the real interest

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A government budget surplus _______.

A. increases the supply of loanable funds

B. raises the real interest rate

C. decreases the demand for loanable funds and lowers the real interest rate

D. decreases net taxes, increases disposable income, and increases saving

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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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