Assume that the united states begins deficit spending to fund new social welfare
programs.
a. using a correctly labeled loanable funds graph, show and explain the impact of
the new spending on realinterest rates in the united states.
b. explain the impact of the change in interest rates you identified in part (a) on
each of the following:
i. capital investment
ii. long-term economic growth
iii. the international value of the u. s. dollar