Need help with econ question! Using a supply and demand diagram, explain  the following scenario impacts the market for loanable funds. Show your work, and be specific about what happens to the equilibrium. (a) The government increases its debt, thus crowding out the loanable funds market.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter21: Financial Markets, Saving, And Investment
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Need help with econ question!

Using a supply and demand diagram, explain  the following scenario impacts the market for loanable funds. Show your work, and be specific about what happens to the equilibrium.

(a) The government increases its debt, thus crowding out the loanable funds market.

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