In 2008, Germany had a budget deficit of 37 billion euros. This will budget deficit the supply of loanable funds and the real interest rate.

Name: In 2008, Germany had a budget deficit of 37 billion euros. This will budget deficit the supply of loanable funds and the real interest rate.
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A budget deficit decreases the supply of loanable funds because the government borrows from the financial markets, reducing the funds available for private investment, which raises the real interest rate.

In 2008, Germany Had a Budget Deficit of 37 Billion