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Suppose that you have the market for loanable funds is originally in equilibrium with zero government debt. The loanable funds market is represented by the

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Suppose that you have the market for loanable funds is originally in equilibrium with zero government debt. The loanable funds market is represented by the following demand and supply functions. Demand: r = 6 - 0.002Q Supply: r = 0.002Q The government then runs a deficit and it changes the supply curve to: r = 1.5 + 0.002Q Calculate the amount of crowding out in the economy

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