2. Sectors affecting the market for loanable funds The loanable funds theory says that factors affecting the supply and demand for loanable funds explain the fluctuations in the market interest rate. Before examining the market for loanable funds in its entirety, it's important to understand its individual components. Use the following table to determine whether each financial market participant contributes to the supply of loanable funds or the demand for loanable funds in each scenario. Then determine which sector the financial market participant contbutes to: business, federal government, foreign, household, or municipal government. Hint: In each scenario, the United States is the domestic country, Supply or Demand for Loanable Funds Scenario Sector Raphael borrows $27,500 to finance the purchase of 2019 Toyota Camry Canada's government imposes a tax law that makes any savings during the year exempt from personal income taxes. The U.S. government runs a budget surplus and purchases $1 billion worth of bonds from banks with the excess funds, Argentina's government wants to obtain financing by issuing Argentina Treasury bills to U.S. Investors