Solved: Suppose that in the next federal budget the government, Microeconomics

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Suppose that in the next federal budget the government

Suppose that in the next federal budget, the government decides to eliminate all (government) purchases that are financed by borrowing because the politicians worry about a budget deficit. What is wrong with this argument? Briefly discuss using the loanable funds market.

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Microeconomics: Suppose that in the next federal budget the government

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