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D so 60 90 120 150 100 Quantity 04 loanable lundl (million. 01 dolor.) Refer to Figure 6.6. The market is in equilibrium. If the

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D so 60 90 120 150 100 Quantity 04 loanable lundl (million. 01 dolor.) Refer to Figure 6.6. The market is in equilibrium. If the government budget deficit rises, which of the following would you expect to see? 0 The interest rate will rise about 10 percent. 0 The interest rate will fall below 4 percent. 0 The quantity of loanable funds demanded by firms will rise above $120 million. 0 The budget deficit will have no impact on the quantity of loanable funds demanded by firms. 0 The quantity of loanable funds demanded by firms will fall below $120 million

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