The difference between tax revenues and public expenditure is positive when there is a budget surplus, but negative when there is a budget deficit. Investment expenditure is an important segment of real GDP.
It is usually not only the most volatile part of real GDP but also investments in physical capital contribute significantly to economic growth. Normally, companies borrow this money.
The market for borrowers describes how these borrowers take place. Loan funds are provided based on savings. The need for credit funds is based on credit. The interaction between savings and demand for loans determines the actual interest rate and the number of loans.
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The right way of asking the question is:
When the government increases its purchases of goods and services and at the same time increases taxes, so that public saving is unchanged, then:
