Using the demand and supply of loanable funds, demonstrate the effect of the following on the interest rate. as a result, what would you expect to be the impact of the change on growth?
a. government increases spending without increasing taxes.

The interest rate increases.

Explanation:

When the government increases spending, without increasing taxes, it has to borrow from the loanable funds market. This increases the demand for loanable funds.  

As a result, the demand curve moves to the right. This rightward shift in the demand curve will cause the interest rate to increase.  

So an increase in government spending will cause interest rates to increase.

the federal government of the united states was established by the constitution. us is a presidential republic. the president is head of state, head of government and of a two party legislative and electoral system. the supreme court balances the powers of the federal and the state government. yhe executive branch is headed by the oresident. there are two chambers of congress, the senate and the house of representatives. judicial power is exercised by the judicial branch (or judiciary), comprised of the supreme court and lower federal courts. the judiciary's function is to interpret the   constitution as well as the federal laws and regulations.