Use the following to answer questions:
-(Figure: The Market for Loanable Funds II) Use Figure: The Market for Loanable Funds II. An increase in government borrowing will shift the demand for loanable funds to the _____ and _____ the interest rate.

Question

Use the following to answer questions: 
-(Figure: The Market for Loanable Funds II) Use Figure: The Market for Loanable Funds II. An increase in government borrowing will shift the demand for loanable funds to the _____ and _____ the interest rate.

Quizplus · Accepted Answer

An increase in government borrowing will increase the demand for loanable funds, shifting the demand curve to the right. This will increase the interest rate, as shown in the graph.

Use the Following to Answer Questions