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Explain how this act would affect the loanable fund market

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Reference no: EM131344848

Currently the government of ABC Land maintains budget surplus. However, the country needs expansion of highways to ensure future economic growth. The President decides to start the expansion work in 2016, which will force the government to enter budget deficit for next couple of years. Using a diagram, show and explain how this act would affect the loanable fund market.

Reference no: EM131344848

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