# An increase in the budget deficit that causes the government to increase its borrowing ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: An increase in the budget deficit that causes the government to increase its borrowing ? Correct Answer: D. Shift the supply of loanable funds to the left. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# An increase in the budget deficit that causes the government to increase its borrowing ?

Direct Answer & Quick Reference

The correct option is **D. Shift the supply of loanable funds to the left**.

A. Shifts the supply of loanable funds to the right

B. Shift the demand for loandbale funds to the left

C. Shift the demand for loanable funds to the right

D. Shift the supply of loanable funds to the left **(Correct Answer)**

✨ Explain with AI

Verified Key: D. Shift the supply of loanable funds to the left
Solved by 4,708+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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*Source: https://test-prep.blog/mcq/an-increase-in-the-budget-deficit-that-causes-the-government-to-increase-its-bor-2c6e8367-58a3-4c47-898c-b3d0dd827e74*
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