?

Macroeconomics

Free Version

Upgrade subject to access all content

Moderate

Closed Economy, Increased Size of Budget Deficit

MACRO-KZDGNB

In a closed economy, if the government increases the size of its budget deficit (i.e. borrows more), then…

A

The AD curve shifts to the left

B

The AD curve shifts to the right

C

The IS curve shifts to the left

D

The IS curve shifts to the right

E

The LM curve shifts to the left

F

The LM curve shifts to the right