Considering your answer in Q (2), the govt deficit increases. Explain why and also show the impact in the market of loanable funds using a graph. (40 words)

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter31: The Impacts Of Government Borrowing
Section: Chapter Questions
Problem 26P: Sketch a diagram of how sustained budget deficits cause low economic growth.
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Considering your answer in Q (2), the govt deficit increases. Explain why and also show the impact in the market of loanable funds using a graph. (40 words)
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