Federal and state governments will reduce deficit spending


Federal and state governments will reduce deficit spending by 1.8 trillion this fiscal year. This action will cause which of the following to occur?

a. bond supply to increase

b. bond demand to increase

c. an increase in loanable funds demand

d. an increase in loanable funds supply

e. bond prices decrease

f. interest rates decrease

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Business Economics: Federal and state governments will reduce deficit spending
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