Suppose the government runs fewer budget deficit and there is a decrease in the average household income. Then, The new EQ quantity of loanable funds would be indeterminate,, but the new EQ interest rate would increase. O The new EQ quantity of loanable funds would decrease, but the new EQ interest rate would be indeterminate. O The new EQ quantity of loanable funds would be indeterminate, , but the new EQ interest rate would decrease. The new EQ quantity of loanable funds would be indeterminate, but the new EQ interest rate would increase. The new EQ quantity of loanable funds would increase, but the new EQ interest rate would be indeterminate.
Suppose the government runs fewer budget deficit and there is a decrease in the average household income. Then, The new EQ quantity of loanable funds would be indeterminate,, but the new EQ interest rate would increase. O The new EQ quantity of loanable funds would decrease, but the new EQ interest rate would be indeterminate. O The new EQ quantity of loanable funds would be indeterminate, , but the new EQ interest rate would decrease. The new EQ quantity of loanable funds would be indeterminate, but the new EQ interest rate would increase. The new EQ quantity of loanable funds would increase, but the new EQ interest rate would be indeterminate.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose the government runs fewer budget deficit and there is a decrease in the average
household income. Then,
O The new EQ quantity of loanable funds would be indeterminate, , but the new EQ interest rate would
increase.
O The new EQ quantity of loanable funds would decrease, but the new EQ interest rate would be
indeterminate.
O The new EQ quantity of loanable funds would be indeterminate, , but the new EQ interest rate would
decrease.
The new EQ quantity of loanable funds would be indeterminate, but the new EQ interest rate would
increase.
The new EQ quantity of loanable funds would increase, but the new EQ interest rate would be
indeterminate.
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