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#1. Draw a correctly labeled loanable funds graph that shows what happens to real interest rates for each of the following situations: (You will have
#1. Draw a correctly labeled loanable funds graph that shows what happens to real interest rates for each of the following situations: (You will have 3 graphs)
- The government borrows money to fund a war.
- Business investors become more optimistic about the economy.
- The government raises personal income taxes (do not consider the change in consumer saving).
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