The effect of government borrowing can be modeled using the loanable funds market. A government budget...

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The effect of government borrowing can be modeled using the loanable funds market. A government budget deficit results in an increase in the demand (D) for loanable funds. A budget surplus reduces the demand for loanable funds. It results in an increase in the supply (S) of loanable funds if government pays off the debt Complete the table below. For the Effect on Government Budget specify Deficit or Surplus. Also, specify with up or down arrows what will happen to the tools of fiscal policy, the demand and supply of loanable funds, the debt, and the real interest rate Fiscal Policy Expansionary Contrationary Crowding Out Tools of Fiscal Policy G T G T Effect on Gov Budget Effect on Gov Debt Effect on Loanable Funds Market D D S S Effect on Real Interest Rate The effect of government borrowing can be modeled using the loanable funds market. A government budget deficit results in an increase in the demand (D) for loanable funds. A budget surplus reduces the demand for loanable funds. It results in an increase in the supply (S) of loanable funds if government pays off the debt Complete the table below. For the Effect on Government Budget specify Deficit or Surplus. Also, specify with up or down arrows what will happen to the tools of fiscal policy, the demand and supply of loanable funds, the debt, and the real interest rate Fiscal Policy Expansionary Contrationary Crowding Out Tools of Fiscal Policy G T G T Effect on Gov Budget Effect on Gov Debt Effect on Loanable Funds Market D D S S Effect on Real Interest Rate The effect of government borrowing can be modeled using the loanable funds market. A government budget deficit results in an increase in the demand (D) for loanable funds. A budget surplus reduces the demand for loanable funds. It results in an increase in the supply (S) of loanable funds if government pays off the debt Complete the table below. For the Effect on Government Budget specify Deficit or Surplus. Also, specify with up or down arrows what will happen to the tools of fiscal policy, the demand and supply of loanable funds, the debt, and the real interest rate Fiscal Policy Expansionary Contrationary Crowding Out Tools of Fiscal Policy G T G T Effect on Gov Budget Effect on Gov Debt Effect on Loanable Funds Market D D S S Effect on Real Interest Rate

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