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4.5 Explain and show graphically bow an increase in government spending (ie, budget deficit) affects the equilibrium interest rate in the market for loanable funds.

4.5 Explain and show graphically bow an increase in government spending (ie, budget deficit) affects the equilibrium interest rate in the market for loanable funds.

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter21: Financial Markets, Saving, And Investment
Section: Chapter Questions
Problem 9P
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4.5
7:43 O 4.4 Explain and show graphically how an increase in expected profits from firm investment projects affects the equilibrium interest rate and the equilibrium quantity of loanable funds. 4.5 Explain and show graphically how an increase in government spending (ie, budget deficit) affects the equilibrium interest rate in the market for loanable funds.
Transcribed Image Text:7:43 O 4.4 Explain and show graphically how an increase in expected profits from firm investment projects affects the equilibrium interest rate and the equilibrium quantity of loanable funds. 4.5 Explain and show graphically how an increase in government spending (ie, budget deficit) affects the equilibrium interest rate in the market for loanable funds.
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