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Government Demand for Funds Increases the Demand for Money

Government Demand for Funds Increases the Demand for Money. Loanable Funds Market. I and i are the initial equilibrium values. D = private sector demand for funds (Investment) D + (G–T) = private + government demand for funds I1 and i1 are the new equilibrium values.

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Government Demand for Funds Increases the Demand for Money

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  1. Government Demand for Funds Increasesthe Demand for Money Visual 5.1 http//apeconomics.ncee.net

  2. Loanable Funds Market I and i are the initial equilibrium values. D = private sector demand for funds (Investment) D + (G–T) = private + government demand for funds I1 and i1 are the new equilibrium values. I2 = new level of private investment I1 – I2 = government demand for funds (G–T) Visual 5.2 http//apeconomics.ncee.net

  3. The Effects of Policy Changes inMultiple Markets Visual 5.3 http//apeconomics.ncee.net

  4. AD and SRAS and Short Run Phillips Curve Short-Run Phillips Curve Holding constant 1. Expected inflation rate 2. Natural rate of unemployment Visual 5.4 http//apeconomics.ncee.net

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