Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 11 of 11
The crowding-out effect suggests that government borrowing to finance higher expenditures will most likely increase ______.
B. the real interest rate
C. the supply of loanable funds
A. private investment
B. the real interest rate
C. the supply of loanable funds
User Contributed Comments 3
| User | Comment |
|---|---|
| bravoshieh | Any idea why there is a decrease in the supply of loanable funds? Thought an increase in the real interest rate only drives the supply up? |
| Antoinepo | increase in interest rate comes from the lack of loanable funds |
| Antoinepo | lack of loanable funds comes from the government excessive borrowing |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
explain the implementation of fiscal policy and difficulties of implementation as well as whether a fiscal policy is expansionary or contractionary
CFA® 2024 Level I Curriculum, Volume 1, Module 3.