Manipulate the graph to show what will happen to supply and demand in the market for loanable funds when the government budget deficit increases, changing the equilibrium quantity of loanable funds 3 percentage points. Ceteris paribus, what is the new interest rate? interest rate: Ceteris paribus, private investment would DF Interest rate () 10 9 8 1 0 Supply Demand 2468 10 12 14 16 18 20 22 24 26 28 Quantity of loanable firds (% of GDP)

Manipulate the graph to show what will happen to supply and demand in the market for loanable funds when the government budget deficit increases, changing the equilibrium quantity of loanable funds 3 percentage points. Ceteris paribus, what is the new interest rate? interest rate: Ceteris paribus, private investment would DF Interest rate () 10 9 8 1 0 Supply Demand 2468 10 12 14 16 18 20 22 24 26 28 Quantity of loanable firds (% of GDP)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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