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A government decides to increase spending on public projects while running a budget deficit. How will this affect the demand for loanable funds?
How do national savings and public savings interact to determine the availability of loanable funds in an economy?
What effect do increased tax benefits for household savings have on the supply of loanable funds?
If a government is running a budget deficit, what is the likely impact on the demand for loanable funds and the equilibrium interest rate?
What are the macroeconomic implications of a decrease in the supply of loanable funds for investment and economic growth?
Consider a scenario where both the demand and supply for loanable funds increase simultaneously. What is the likely effect on equilibrium interest rates and quantities?
What is the impact of a government budget deficit on public savings and the supply of loanable funds?
What is the effect of removing tax benefits for household savings on the supply of loanable funds?
If the government introduces new tax incentives for private savings, what is the expected impact on the supply of loanable funds and equilibrium interest rates?
A government running a budget surplus decides to invest in infrastructure. How will this affect the demand for loanable funds?