Suppose that the domestic quantity of loanable funds supplied equals the domestic quantity of loanable funds demanded.

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Suppose that the domestic quantity of loanable funds supplied equals the domestic quantity of loanable funds demanded. In other words, there is no foreign lending or borrowing. If the government budget deficit increases, what will happen in the market for loanable funds? Will the country lend or borrow internationally? Briefly explain.
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Macroeconomics

ISBN: 9780132109994

1st Edition

Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty

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