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a. Suppose the loanable funds market is initially in equilibrium. Show the market graphically, labeling the axes and demand and supply curves. b. If the

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a. Suppose the loanable funds market is initially in equilibrium. Show the market graphically, labeling the axes and demand and supply curves. b. If the government was initially running a balanced budget, and then begins to run a budget deficit, how does the supply of savings change? c. Show the new equilibrium, and explain what happens to equilibrium investment and interest rate

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