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QUESTION 8 Also, although budgetary deficits are designed to shift the aggregate demand curve to the right, it also A) the demand for loanable funds in the financial sector of the economy. This could cause real B) rates to C) The effect would be that D) spending by firms would fall, thereby offsetting (to a degree) the intended effect of policy. This phenomenon is known as the E) effect. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save