A tax cut that increases the budget deficit results in ________ in the ________ loanable funds.

Name: A tax cut that increases the budget deficit results in ________ in the ________ loanable funds.
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Question

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A tax cut that increases the budget deficit typically leads to an increase in the demand for loanable funds. This is because the government needs to borrow more to finance the deficit, thus increasing the demand in the loanable funds market.

A Tax Cut That Increases the Budget Deficit Results in ________