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Can you help with the following Hint: There are two events which happen at the same time and you should see shifts in both demand

Can you help with the following

Hint: There are two events which happen at the same time and you should see shifts in both demand and supply curves for loanable funds.

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Q2: Suppose the government will have to borrow more this year due to higher deficits. In the meantime, the corporate tax rate (on profit) is lowered. (48 Points) Draw and attach a supply-and-demand diagram here to analyze the impact of these issues on the market for loanable funds. Will the interest rate rise, fall or stay the same

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