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 decreased as the cost of borrowing decreased. increased as the cost of borrowing increased. decreased as the cost of borrowing increased. increased because the cost of borrowing decreased.