Question: Government borrowing to finance large deficits increases the demand for lendable funds and a. Increases the supply of lendable funds. b. Exerts downward pressure on

Government borrowing to finance large deficits increases the demand for lendable funds and

a. Increases the supply of lendable funds.

b. Exerts downward pressure on interest rates.

c. Has no impact on interest rates.

d. Puts upward pressure on interest rates.

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