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In: Economics

Suppose that investment is​ $160 billion, saving is​ $140 billion, government expenditure on goods and services...

Suppose that investment is​ $160 billion, saving is​ $140 billion, government expenditure on goods and services is​ $150 billion, exports are​ $200 billion, and imports are​ $250 billion. Is the​ government's budget exerting a positive or negative impact on​ investment? The government budget balance is a deficit or surplus​, which is exerting a positive or negative impact on investment. It decreases or increases the demand for loanable​ funds, which ​ _______ the real interest rate and​ ________ investment.

A. ​lowers; decreases B. ​raises; decreases C. ​raises; increases D. ​lowers; increases

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Rahul Sunny answered 1 year ago
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