The federal government is projected to have a large deficit next year. Suppose that, instead of borrowing

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The federal government is projected to have a large deficit next year. Suppose that, instead of borrowing funds to finance the deficit, the government raised the tax rates for all individuals, borrowers and lenders alike. What would happen to the equilibrium interest rate and quantity of loanable funds in

(a) the government bond market and

(b) the mortgage market?

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