One objection to deficit spending is that it increases the demand for loanable funds thereby putting upward pressure on interest rates that crowds out private investment spending thereby lowering future U.S. growth.                           (1) What is the general level of interest rates in 2020?

Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

c) How worrying is the increases in government deficits and debt? Answer these questions in detail and While answering these questions please write academic references in havard referencing style and site them in text please.

1) The government's budget deficit increases, and at the same time the trade deficit grows. This will lead to a(n) _____ in the demand and a(n) _____ in the supply of loanable funds in domestic markets. increase; increase decrease; increase decrease; decrease 2) A temporary decrease in government purchases would cause: a rightward shift in the saving curve and a leftward shift in the investment curve. a rightward shift in the saving curve and a rightward shift in the investment curve. no shift in the saving curve, but a leftward shift in the investment curve.

Economics The table shows an economy's demand for loanable funds schedule and supply of loanable funds schedule when the government's budget is balanced Real interest rate Loanable funds demanded Loanable funds supplied (percent per year) (trillions of 2010 dollars) (trillions of 2010 dollars) 3 12 6 11 10 9 9 7 8 10 11 If the Ricardo-Barro effect occurs, and if the government budget deficit is $2 trillion, the real interest rate is percent year and the quantity of investment is trillion. O A. 7.0, $8.0 O B. 7.0; $10 0 OC. 5.0; $10.0 OD. 6.0, $9.0

Question 16 A deficit during a period of economic prosperity is called a deficit.

please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly

The current market rate of interest is 10 percent. At that rate of interest, businesses borrow $300 billion per year for investment and consumers borrow $50 billion per year to finance purchases. The government is currently borrowing $150 billion per year to cover its budget deficit.  a. Derive the market demand for loanable funds, and show how investors and consumers will be affected if the budget deficit increases to $250 billion per year. b. Assuming taxpayers do not anticipate an increase in the future market rate of interest due to the increase in budget deficit, show the impact of the increase in the budget deficit on the market for loanable funds. c. How would your conclusion differ if taxpayers fully anticipate future tax increases to offset the increase in the budget deficit? d. Do you think the Ricardian Equivalence is realistic?

Problem 17-05 algo If automatic stabilizers reduce the federal deficit by $60 billion for every 1 percent increase in real GDP growth, what will happen to the deficit balance if the economy's growth changes from 3 percent to -1 percent? Using this information, identify the change in the GDP growth rate and calculate the resulting change in the deficit balance. Instructions: Enter your responses as a whole number. For Part a, if you are entering a negative number be sure to include a negative sign (-) in front of that number. For Part b, enter your response as a positive value. a. Change in GDP growth rate b. Change in deficit balance The deficit will [(Click to select) by $[ billion.

1) Using a graph representing the market for loanable funds, show and explain what happens to interest rates and investment if: a reduction in military spending moves the government’s budget from deficit into surplus. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.