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Could you please help me with this question? explain it (every question please) A country's government has been running a decit for the past few

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Could you please help me with this question? explain it (every question please)

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A country's government has been running a decit for the past few years; Suppose this country decides to increase its government spending. Compare the impact of the increase in government spending in a closed economy and an open economy. In a closed economy, an increase in government spending will increase v the demand v for loanable funds. All else the same, this will the equilibrium interest rate. In an open economy, an increase in government spending will (Click to select) v the (Click to select) v for loanable fundsi All else the same, this will (Click to select) v the equilibrium interest rate. As a result of this change in the interest rate, capital inflow can be expected to (Click to select) v and this will ca use the (Click to select) v loanable funds curve to shift to the (Click to select) v . Considering your answers to the above questions, crowding out is more likely to be observed in (Click to select) v economy because investment spending will be (Click to select) v

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