Business, 24.03.2021 17:10 avagracegirlp17zx2
Suppose that a country is in a recession and the government decides to increase spending. It commissions a very large statue for $50 million. To pay for the statue, the government borrows all of the $50 million. As a result, the interest rate increases from 3% to 4%, and the equilibrium quantity of loanable funds increased from 500 million to 530 million.
Required:
Sketch a graph for the loanable funds market to represent this scenario.
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Suppose that a country is in a recession and the government decides to increase spending. It commiss...
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