b. Using the loanable funds theory, explain what will happen to the real equilibrium interest rate under the following scenarios: (In your discussion describe or show with a graph the change in the supply curve for loanable funds and the change in its intersection with the demand curve for loanable funds). (1) The U.S. Federal Reserve engages in an open market expansion policy to increase the money supply to speed up the economy. (2) The U.S. government has a larger demand for funds to fund a large deficit, so will be seeking to borrow loanable funds by issuing a large amount of new government bonds to sell to the public. (3) There is an expansion, and businesses are expanding and increasing their plans to take on new capital projects, increasing their demand for financing. (4) Wealth and liquidity rises in an economy, resulting in investors and savers more willing to invest/lend funds in an economy.