Answered: In the era of Pandemic, Indonesia’s…

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter16: Creating An Environment For Growth And Prosperity

Section: Chapter Questions

Problem 14CQ

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In the era of Pandemic, Indonesia’s government is trying to ensure that all of it’s people could live and survive through pandemic. Some of the government’s policies are affecting the market for loanable funds. Using curve, illustrate the change in the market for loanable funds if the government decided to: a) Borrow $20 billion from The World Bank b) Suppose households believe that the greater government borrowing today implies higher taxes to pay off the government debt in the future c) Pass laws that make it easier for UMKM to borrow money

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