曼昆经济学原理Chapter 26.pptVIP

Policy 3: Budget Deficit/Surplus Government starts with balanced budget Then, starts running a budget deficit Decrease in the public saving Decrease in supply of loanable funds Supply curve shifts left New equilibrium Higher interest rate smaller quantity of loanable funds Decrease in (private) investment: Crowding out Results from government borrowing Government - budget deficit Interest rate rises Investment falls * ? 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a cer