A) Assume that the graph below is the loanable funds market. Identify curves 1 and 2 and each axis. (5pts) 2 X 1 B) Referencing the graph above, describe how the loanable funds market will respond to a new EPA regulation that will take effect in 12 months that reduces the marginal product of capital. In your description, detail which curve is shifting and in what direction it shifts. What happens to the equilibrium real interest rate and quantities of savings and investment? (5pts) Note: If more than one curve is impacted, a description of how each curve is impacted must be included in your