LL-J" he Question 8: q\" Country 3 is experiencing a recession and has already increased government spending. However, the government does not want to increase taxes, as this will decrease AD. So the government borrows money to fund the increase in government spending. What is created as a result of the government's actions? What happens to the market for loanable funds? Draw this diagram. What is the outcome for interest rates? Howr does this affect the AD-AS diagram? Explain the difference between complete crowding out and partial crowding out