36. After you have studied Reading Between the Lines on pp. 176–177 answer the following questions.

a. What are the long-term problems to which the news article draws attention?

b. What was the major event in the global and U.S. loanable funds markets in 2009?

c. How did the event identified in part

(b) influence the world real interest rate and the global supply of and demand for loanable funds?

d. How did the event identified in part

(b) influence the U.S. supply of and demand for loanable funds and the amount that the United States borrowed from the rest of the world?

e. If governments in other countries were to lower their budget deficits but the U.S. government did not lower its deficit, what would happen to the world real interest rate, the supply of and demand for loanable funds in the United States, and the amount that the United States borrows from the rest of the world?

f. If the U.S. government lowered its budget deficit but the governments in other countries did not lower their deficits, what would happen to the world real interest rate, the supply of and demand for loanable funds in the United States, and the amount that the United States borrows from the rest of the world?