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?

---

Definitions:

Types

Different categories or varieties of things or people, characterized by distinct qualities or attributes.

Establishment Clause

A part of the First Amendment to the U.S. Constitution that prohibits the government from making any law "respecting an establishment of religion," effectively ensuring a separation of church and state.

Free Exercise Clause

A provision in the First Amendment to the United States Constitution that prohibits the government from interfering with the practice of religion.

National Association

A type of organization that operates on a countrywide level, aiming to bring together individuals or groups with common interests or professions.