Draw a separate diagram for each situation and explain what happens in the market for loanable funds.

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Draw a diagram to show the effect of a government budget deficit

Draw a diagram to show the effect of a government budget deficit

Question
Draw a diagram to show the effect of a government budget deficit, tax incentive for saving and investment tax credit. Draw a separate diagram for each situation and explain what happens in the market for loanable funds.

Draw a diagram to show the effect of a government budget deficit

 

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