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Unformatted text preview: .  Cause: Effect: 3. a. Please utilize the loanable funds market, i.e., PDLF, DLFD & SLF, to examine the impact of government budget deficit, i.e., T - G < 0 on real interest rate (r) quantity of private loanable fund demanded (I) graphically . Also state Cause and Effect explicitly.  Cause: Effect: b. What is crowding out effect? Show the amount of crowing out in the graph in a. ...
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This note was uploaded on 09/08/2010 for the course ECON 1A at San Jose State University .