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3. (4 points) Use the demand and supply graph on the Loanable Funds Market to show the impact of the following events alone to equilibrium

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3. (4 points) Use the demand and supply graph on the Loanable Funds Market to show the impact of the following events alone to equilibrium interest rate and investment. (a) A pandemic creates more uncertainty for many households on the labor market. A common coping strategy for households is to set aside more money for raining days. (b) Driverless car become operational; transportation cost is reduced significantly

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