When the government borrows from the public,the result is

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When the government borrows from the public, it increases the demand for loanable funds. This leads to an increase in the interest rate, as there is more demand for the same amount of funds available, leading to a decrease in investment and consumption spending. This can cause a decrease in GDP growth, but it can also decrease the federal deficit. However, it does not directly lead to a decrease in unemployment.

When the Government Borrows from the Public,the Result Is