The deficit in the first 10 months of the year from April 2013 to January 2014 totalled
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The deficit in the first 10 months of the year from April 2013 to January 2014 totalled $10.54 billion, down from $13.87 billion in the same period a year earlier.
a. Explain the effect of the decrease in the budget deficit on the loanable funds market.
b. What effect does the smaller budget deficit have on the real interest rate, private saving, and investment?
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Solution a The budget deficit reduces the money supply ...View the full answer
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Related Book For 
Microeconomics Canada In The Global Environment
ISBN: 9780321931184
9th Edition
Authors: Robin Bade, Michael Parkin
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