Explain how the government can provide an investment incentive to increase the demand of loanable funds. Draw a properly labeled supply and demand graph showing what happens to the market.

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Answer the following questions. Co
1. Answer Problem and Applications #1 on page 271. Make sure you explain your answers. (8 points)
2. Answer Problems and Applications #3 on page 271. Make sure you explain your answers. (8 points)
3. Explain how the government can provide a saving incentive to increase the supply of loanable funds. Draw a properly labeled supply and demand graph showing what happens to the market. (3 points)
4. Explain how the government can provide an investment incentive to increase the demand of loanable funds. Draw a properly labeled supply and demand graph showing what happens to the market. (3 points)


5. Explain the effect of a government deficit and debt on the economy. Draw a properly labeled supply and demand graph showing what happens to the loanable funds market with such a deficit. (3 points)
6. What economic policies do you think can be used to reduce the government deficit and debt? Why? Give some examples to support your answers. Do you think politics would get in the way of your ideas? Why or why not?
I dont have the book so you will have to find it butThe book you will need for this assignment is called,
Principles of Macroeconomics – 10th Edition, by N. Gregory Mankiw (2024). Published by Cengage Learning. ISBN: 978-0-357-72296-1.

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