ECSENOMICS Government Debt Displaces Private Capital T260 Figure 34-2 (a) No Debt (b) With Government Debt 2 3.500 4.000 4.500 3,500 4.500 4.O0 Private capital stock( K) Private capital stock( K) McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Government Debt Displaces Private Capital T-260 Figure 34-2