If the Government Budget Deficit Increases, Which Curve in the Market

question 171

Essay

If the government budget deficit increases, which curve in the market for loanable funds shifts, which direction does it shift, and what happens to the interest rate?

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Definitions:

Emotional Ties

Connections between people that are based on feelings, affections, or personal bonds.

Close Interaction

Intimate or personal engagement between individuals, often involving direct communication or physical proximity.

Fictive Kin

A family in which nonrelatives are accepted as part of a family.

Social Kin

Individuals who are considered family based on social ties, affection, or chosen familial bonds, rather than blood relation.