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5. The market for loanable funds and government policy The following graph shows the market for loanable funds. For each of t
Scenario 1: Suppose savers either buy bonds or make deposits in savings accounts at banks. Initially, the interest income ear
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1) fall

2) increase

3) rise

4) rise

5) deficit

6) decreases

7) rise

8) crowding out

4 5
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