Question Details

Business Homework Help

Question

Adjust the graph to show how a $25.8 billion dollar increase in the government's budget deficit affects the hypothetical loanable funds market below, holding all else equal.

Question 13 of 16 Map Sapling Learning Adjust the graph to show how a $25.8 billion dollar increase in the government's budget deficit affects the I loanable funds market below, holding all else equal. the answer that describes the adjustment in the loanable funds market. The deficit decreases national savings and shifts the Supply O supply curve to the left; increasing the interest rate and crowding out investment spending. The deficit increases national savings and shifts the O supply curve to the right; decreasing the interest rate and crowding out investment spending The deficit decreases the demand for loanable funds O and shifts the demand curve to the left, decreasing the interest rate and crowding out investment spending. The deficit increases the demand for loanable funds Deman O and shifts the demand curve to the right, increasing the interest rate and crowding out investment spending. Quantity of loanable funds (billions of dollars There is a hint available! View the hint by clicking on the bottom divider bar. Click on the divider bar again to hide the hint. Close O Previous Give Up & View Solution Check Answer Next Exti 9 Hin