Select the correct word in Bold

Suppose the U.S. runs a budget deficit of $600 billion and needs to borrow money to balance its budget.

If the U.S. government runs a budget deficit of $600 billion, then the (demand for/supply for) loanable funds in the U.S. market will (increase/decrease), causing U.S. interest rates to (increase/decrease).

If investors in foreign countries like Brazil and China notice the change in interest rates, they will begin (purchasing/selling) U.S. securities rather than those in their domestic markets.

Consequently, the (demand for/supply for) loanable funds in the Brazilian and Chinese markets will (decrease/increase), causing interest rates in those countries to (increase/decrease).

Consequently, businesses and consumers are (less/more) likely to invest because the cost of borrowing money has (decreased/increased).

As a result, the aggregate demand curve will shift to the left, which shows that the unemployment rate has (decreased/increased), the inflation rate has (decreased/increased), and economic growth has (slowed/sped up) in all countries.