All other things unchanged, a general increase in the amount of government borrowing will typically: Group of answer choices A.Shift the demand curve of loanable funds to the left and decrease interest rates B.Shift the demand curve of loanable funds to the right and increase interest rates C.Have no effect on the loanable funds demand curve D.None of the above
Explanation: In this case the best option is shift the demand curve of loanable funds to the right and increase interest rates, because this is the best way to achieve that goal.
