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8. Using the graph below, answer the following questions. Interest Rate Supply of Savings 6 UT A to 2 Investment Demand 20 Loanable Funds (Millions

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8. Using the graph below, answer the following questions. Interest Rate Supply of Savings 6 UT A to 2 Investment Demand 20 Loanable Funds (Millions $) a. If the interest rate is 2.5% how much will firms want to invest? b. How much will households wish to save? c. Will banks want to lower or raise interest rates? d. What is the equilibrium quantity of investment? e. What is the equilibrium interest rate

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