Question

Collaboration with Congress during the Clinton Administration allowed for an aggressive deficit-cutting plan to pass. As a result, the government was able to reach a balanced budget at the end of the 90's. Move the supply and/or demand curves to describe the expected effect that this deficit-reduction likely had upon the loanable funds market. Market for Loanable Funds Interest rate Quantity of loanable funds D S As a result, private investment should have

Answer 1

The answer is "increased because the cost of borrowing decreased".

Step-by-step explanation:

Throughout the scenario when the strategy of ambitious reducing the deficit was established in cooperation with congress throughout the Clinton administration. Only at end of the '90s, then, only at end of the '90s, the government became able to accomplish a balanced Budget, so because borrowing rates fell.