![33. Suppose the government was operating a balanced budget in the year 2025. The next year, in 2026, due to an unanticipated negative economic shock, the government had to increase government spending by $10 billion which resulted in the government running a budget deficit. Part 1: What is the impact of the budget deficit on each of the following: (a) private saving, (b) public saving, and (c) national saving? Show your work and explain your answer. Part 2: Using the market for loanable funds model, draw the impact of the government budget deficit. Label all curves, axes, and if necessary, any shifts. [Hint: Initial equilibrium is the year 2025. Show what happens in 2026.].](https://media.cheggcdn.com/media%2F0de%2F0de223ed-797b-4ea7-b74a-6cbb0b541dd4%2Fimage.png)
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(Solved) : 33 Suppose Government Operating Balanced Budget Year 2025 Next Year 2026 Due Unanticipated Q32729429 . . . .
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