PPSCFPSCNTSPakistan govt jobs
- Subject
- Stockseconomics-mcqs › stocks
- Published
- 30 May 2019
- Last updated
- 28 May 2026
Explanation
An increase in the budget surplus means the government is saving more, which adds to the supply of loanable funds. This increase in supply shifts the supply curve to the right, causing the real interest rate to decrease.
More Stocks MCQs
Practice related questions from the same subject.
- 1.What happens to real interest rates and investment if Pakistani citizens become less future-oriented and reduce their savings at every real interest rate?
- 2.What effect does a rise in the budget deficit have on public savings?
- 3.What is the effect of a larger budget deficit on the real interest rate and the demand for loanable funds used for investment?
- 4.Which combination of government policies is most effective in promoting economic growth?
- 5.What does investment primarily refer to?
- 6.If the public reduces consumption by Rs 100 billion while the government increases its spending by Rs 100 billion, assuming all other factors remain constant, which statement is correct?
- 7.What occurs when government expenditures surpass the revenue collected from taxes?
- 8.What does national saving represent in economic terms?
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