Evaluate the effect of each of the following events on the market for loanable funds. Explain the effects on savings, investment, and the neutral real interest rate.

a. The government runs a government budget surplus instead of a deficit.

b. The federal government decides to forgive some of the

$25 billion in student loan debt.

c. Chinese investors stop sending their funds to Canada, reducing net capital inflows.

d. The nominal interest rate rises 1% in response to a 1%

rise in the inflation rate.