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IIT Kanpur *

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2

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Economics

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Nov 24, 2024

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1

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O Budget Surplus Q3 (b) Considering your response in Q3 (a), what impact will this budget deficit/surplus have on the market for loanable funds? Hint: You are encouraged to draw an appropriate diagram as your rough work to select the correct answer below (3 Marks) | O Real interest falls, Savings decrease and Investment decrease (O Real interest falls, Savings decrease and Investment increase | O Real interest rises, Savings increase and Investment decrease O Real interest rises, Savings increase and Investment increase
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