Scenario 32-2

Due to concerns about a rising level of debt relative to GDP, Congress and the President cut expenditures and raise taxes.
-Refer to Scenario 32-2. In the market for loanable funds which curve(s) does this policy change shift? Which direction does it shift?

Question

Scenario 32-2
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Due to concerns about a rising level of debt relative to GDP, Congress and the President cut expenditures and raise taxes.
-Refer to Scenario 32-2. In the market for loanable funds which curve(s) does this policy change shift? Which direction does it shift?

Quizplus · Accepted Answer

The Answer of Scenario 32-2
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Due to concerns about a rising level of debt relative to GDP, Congress and the President cut expenditures and raise taxes.
-Refer to Scenario 32-2. In the market for loanable funds which curve(s) does this policy change shift? Which direction does it shift?

Scenario 32-2 ​

Scenario 32-2