Complete the following set of sentences concerning the effect of expansionary fiscal policy on the aggregate economy
a. in the market for loanable funds, the demanders of loanable funds are the . the suppliers of loanable funds are the .
b. if the government funds expansionary fiscal policy through borrowing, the .
c. the equilibrium interest rate will and the equilibrium quantity of loanable funds will due to the borrowed government funds.
d. the change in the market for loanable funds will lead to in the quantity of investment demanded.
e. the goal of expansionary fiscal policy is to aggregate demand. the change in investment demand described in part (d) will lead to in aggregate demand. as a result, fiscal policy is effective than theory predicts.
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