Show on the graph how each of the following events changes the equilibrium interest rate by shifting the relevant curve(s). a. The president signs a tax cut into law. 10 S 8 6 4 2 D 100 200 300 400 500 600 700 800 900 1,000 Loanable funds Interest rate

Q: If the government increases spending by 1% of GDP and the original interest rate was 2%, then the…

A: Here the government has increased spending by 1% of GDP and the original interest was 2%, and we…

Q: (Figure: The Market for Loanable Funds III) Use Figure: The Market for Loanable Funds III. Suppose…

A: The market of loanable funds represents the interaction between the lenders and borrowers in the…

Q: If Congress instituted an investment tax credit, the interest rate would Select one: a.rise and…

A: a. rise and saving would rise