When the government borrows,the ________ loanable funds shifts to the right,causing the interest rate to ________,which causes private investment to ________.

Question

Quizplus · Accepted Answer

When the government borrows, it increases the demand for loanable funds, shifting the demand curve to the right. This increased demand leads to a rise in interest rates, which can crowd out private investment, causing it to fall.

When the Government Borrows,the ________ Loanable Funds Shifts to the Right,causing