Question: Need Help The graph shows the loanable funds market when there is neither a government budget surplus nor a government Real interest rate (percent per

Need Help

Need Help The graph shows the loanable funds market when there is

The graph shows the loanable funds market when there is neither a government budget surplus nor a government Real interest rate (percent per year) budget deficit 10- Draw a point at the equilibrium quantity of loanable funds and the equilibrium real interest rate. Label it 1. SLF Now suppose that the government has a budget deficit of $1 trillion. 8- Draw a curve that shows the effect of this deficit in the loanable funds market. Label it. Draw a point at the new equilibrium real interest rate and quantity of saving. Label it 2. 6- Draw a point to show investment when the government budget deficit is $1 trillion. Label it 3. 4- PDLF 2 3 Loanable funds (trillions of 2007 dollars) >>> Draw only the objects specified in the

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