please, don't pay attention to the lines in the graph. I know it's wrong.
The budget deficit of government increases the demand for loanable fund increases that lead to a higher price of loanable funds (interest rate ) so the equilibrium of the loanable market exists at the higher interest rate and at the higher interest rate private investment crowd out.
that's why maintaining a budget deficit is not feasible for any government.
with government surplus public saving increases
so option A, B and D is correct and option c is incorrect.
please, don't pay attention to the lines in the graph. I know it's wrong. 90- SLF...
Real interest rate (percent per year) 9.07 SLF The graph shows the supply of loanable funds and the demand for loanable funds in an economy Suppose the government has a budget deficit of $0.2 trillion and the Ricardo-Barro effect holds. Draw the new demand for loanable funds curve. Label it. Draw the new supply of loanable funds curve. Label it. Draw a point that shows the equilibrium quantity of loanable funds and interest rate. The Ricardo-Barro effect is the proposition...
please help me to answer all quations
write all the answers on the answer sheet) I multiple choices (10 points, 1 point for each question) 1. Which of the following is included in GDP?( A the production that you hire someone to mow your lawn B the production that you mow your own lawn C the production that you produce goods and services abroad 2. In the GDP accounting, investment the purchases of bonds B the purchases of stocks C...