2. Suppose the government borrowing increases by $50 biJiion to finance an increase in infrastructure spending. a. Using a supply-and-demand diagram for private loanable funds, analyze this policy. Does the interest rate rise or fall? Explain. (3 points) b. What happens to investment? To private savings? To public savings? Compare the size of the changes to the $50 billion increase in government expenditure. (3 points)