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a. Using the loanable funds market, show the situation of a country where the domestic real interest rate is 3% and the world real interest

a. Using the loanable funds market, show the situation of a country where the domestic real interest rate is 3% and the world real interest rate is 3.5% Be sure to label your graphs clearly

b. Is this country a borrower or a lender? Please explain in one sentence.

c. Using the loanable funds market, show the situation of a country where the domestic real

interest rate is 3% and the world real interest rate is 2%

d. Is this country a borrower or a lender? Please explain in one sentence.

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