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If government finances fiscal policy through additional borrowing, it could affect the loanable funds market by causing.

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ogorwyne

If the government  finances fiscal policy through additional borrowing, it could affect the loanable funds market by causing

  • An increase in the demand and an increase in the supply of loanable funds.

What are loanable funds?

This is the total sum of funds that exists in the market which lenders have decided to save and borrow out to borrowers.

This money is controlled by the interest rate that exists in the given economy.

Read more on loanable funds  here:https://brainly.com/question/13636725

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