In 2009, the U. S. government's budget deficit increased substantially. Other things the same, this means the a. supply of loanable funds shifted to the right. b. supply of loanable funds shifted to the left. c. demand for loanable funds shifted to the right. d. demand for loanable funds shifted to the left.

Question

Business

Juliana Rowland

11 September, 20:16

In 2009, the U. S. government's budget deficit increased substantially. Other things the same, this means the a. supply of loanable funds shifted to the right. b. supply of loanable funds shifted to the left. c. demand for loanable funds shifted to the right. d. demand for loanable funds shifted to the left.

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Answers (2)

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Macey · Answer 1

B. Supply of loanable funds shifted to the left.

Explanation:

In 2009, the Federal budget deficit had a total of $1.4 Trillion. This was a very noticeable increase from the preceding year. The Gross Domestic Product (GDP) increased from 3.1% in 2008 to 9.9% in 2009. This was the highest deficit since 1945.

The result of this economical calamitous year meant that the supply of loanable funds shifted to the left.

Yasmine Page · Answer 2

b. supply of loanable funds shifted to the left.

Explanation:

In 2009, the U. S. government's budget deficit increased substantially. Other things the same, this means the supply of loanable funds shifted to the left indicating that the people weren't willing to save as a result of low interest rates.