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explain, Reflections on capital market equilibrium underscore the significance of government borrowing on interest rates, paralleling firm borrowing but with distinct implications. Government borrowing's impact
explain, Reflections on capital market equilibrium underscore the significance of government borrowing on interest rates, paralleling firm borrowing but with distinct implications. Government borrowing's impact depends on its financing source, influencing household consumption patterns and preferences. The discussion extends to scenarios involving borrowing and saving over multiple periods, emphasizing the interplay between government financing choices, household behavior, and their implications for capital market equilibrium and interest rate dynamics
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