Diagram the effect of each of the following on U.S interest rates. (Show the initial equilibrium in black or blue (pencil or pen). Show the change with an arrow or with a contrasting color. YOU MUST LABEL YOUR AXES AND LABEL THE CURVES.

5. Increased capital requirements imposed on U.S. banks, making them less able to lend.

6. An increase in foreign interest rates.

7. Reduced political instability in third world countries, which makes investors in the U.S. and Europe more interested in investing in these countries.