Exhibit 13-8
-In Exhibit 13-8, D₀and S₀ represent the initial demand and supply of loanable funds. If the federal government borrows more money to fund a deficit it would shift the equilibrium in this market from point a to

Question

Exhibit 13-8 Exhibit 13-8 -In Exhibit 13-8, D<sub>0 </sub>and S<sub>0</sub> represent the initial demand and supply of loanable funds. If the federal government borrows more money to fund a deficit it would shift the equilibrium in this market from point a to A) point b B) point c C) point d D) point f E) point h

Exhibit 13-8 -In Exhibit 13-8, D<sub>0 </sub>and S<sub>0</sub> represent the initial demand and supply of loanable funds. If the federal government borrows more money to fund a deficit it would shift the equilibrium in this market from point a to A) point b B) point c C) point d D) point f E) point h

-In Exhibit 13-8, D₀and S₀ represent the initial demand and supply of loanable funds. If the federal government borrows more money to fund a deficit it would shift the equilibrium in this market from point a to

Quizplus · Accepted Answer

When the federal government borrows more money, it increases the demand for loanable funds, shifting the demand curve (D) to the right, moving the equilibrium from point a to point b.

Exhibit 13-8 -In Exhibit 13-8, D0 and S0 Represent the Initial Demand

Exhibit 13-8 -In Exhibit 13-8, D₀and S₀ Represent the Initial Demand