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How does the government budget deficit impact interest rates, investment, and economic growth ? Explain your answer.
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- Using a graph representing the market for loanable funds, show and explain what happens tointerest rates and investment if a government goes from a deficit to a surplus.What are some fiscal policies that might encourage economic growth ? Please answer this question carefully! What are some fiscal policies that might improve a society's human capital? Please answer this question carefully! How would you expect larger budget deficits to affect a private sector investment in physical capital? Why? Please answer this question carefully!What are implications for a government running deficits?How could that be effectively addressed?What are the ethical concerns of the deficit?