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Posted: **Mon Apr 18, 2022 9:11 am**

: Attempt 2 The Market For Loanable Funds With Crowding Out After An Increase In Government Borrowing The Equilibrium In 1 (35.68 KiB) Viewed 26 times

: Attempt 2 The Market For Loanable Funds With Crowding Out After An Increase In Government Borrowing The Equilibrium In 2 (35.94 KiB) Viewed 26 times

Attempt 2 The Market for Loanable Funds with Crowding Out. After an increase in government borrowing, the equilibrium interest rate will rise from 6% to _%, and the amount of private investment will Interest rate (%) 12 10 Supply of loanable funds 8 6 4 Demand for loanable 2

6 4 2 Demand for loanable funds 0 10 20 30 40 50 60 70 80 90 100 Quantity of loanable funds (billions of dollars) 8; fall by $20 billion 10; be indeterminate 8; stay the same 8; increase by $20 billion