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3. Effects of a government budget deficit Suppose a hypothetical open economy uses the U.S. dollar as currency. The table below presents data describing the

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3. Effects of a government budget deficit Suppose a hypothetical open economy uses the U.S. dollar as currency. The table below presents data describing the relationship between different real interest rates and this economy's levels of national saving, domestic investment, and net capital outflow. Assume that the econormy is currently operating under a balanced government budget. Given the information in the table above, woe che blue points (cludo symbel) to piot the deminid for loanable funds. Next, use the arange points (spuare symbol) to plot the supply of lamable funds. Finslly, use the Hack point (cross symbol) to indicate the equatibrium in this markat; (3) Market for toanable Funds Equibrium QUANTITY OFLOANAELE FUNDS that the econgmy if aperiencing loamela fundsi curiency exchange markit. Cise the green lioe (oriangle symbol) no show the supply curve in this marhet before the hudget deficit. Then use the purple ine (diamond syentsol) show the suppy curve atter the brodget dofict. Simarse the effets of a bodget deficet fr filing it the folewing tak h

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