In order for private investment to go and price go down, how would the supply and demand curve shift? This is during a budget deficit.

The supply curve experiences an upward trend while the demand curve experiences a downward trend for prices to reduce in the private investment sector in the event of a budget deficit. When a budget deficit occurs, interest rates rise to entice investors because the government has to borrow money from the private investment sector. This means that prices in the private investment sector are high because demand is also high. Therefore, for the private sector prices to reduce, demand has to reduce and supply to increase due to a reduced budget deficit.