5. Canadian Loanable Funds Market: Assume the Canadian Federal Government increases their budget deficit by 30%. Draw the appropriate graph carefully labeling, including the surplus/shortage as well as the change in private savings and investment with the change in the real interest rate. Indicate on the graph if the real interest rate and the quantity of loanable funds have increased or decreased.

5. Canadian Loanable Funds Market: Assume the Canadian Federal Government increases their budget deficit by 30%. Draw the appropriate graph carefully labeling, including the surplus/shortage as well as the change in private savings and investment with the change in the real interest rate. Indicate on the graph if the real interest rate and the quantity of loanable funds have increased or decreased.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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