a-government-running-a-budget-surplus-decides-to-invest-in-infrastructure-how-wi

Question

A government running a budget surplus decides to invest in infrastructure. How will this affect the demand for loanable funds?

Accepted Answer

Demand for loanable funds will increase.

Answer

Demand for loanable funds will decrease.

Answer

Supply of loanable funds will decrease.

Answer

Supply of loanable funds will increase.