2.Fill in A,B,C as below: Gov. wan to stop foreign investment from flowing into

ID: 2507554 • Letter: 2

Question

2.Fill in A,B,C as below:

Gov. wan to stop foreign investment from flowing into the country , but at the same time they decide to tighten their budget and run a surplus. The deficit will cause the demand for loanable funds curve to increase,decrease, not change (a____)? and if foreign investment is stopped then interest rates will be higher than,lower than,the same as?(b____), it would with the foreign capital inflow& overall investment would be higher than, the same as ?(c____) it would be with foreign capital inflows.