Draw a very neat, labeled, marked graph to show the impact of an investment credit that a government gives to the firms to encourage them to invest more on the market for loanable funds.

Your graph should clearly show the following:

1. What happens to the demand or supply curve of loanable funds as a result of the investment credit?

2. How does the equilibrium change?

3. What happens to the equilibrium amount of loanable funds and the equilibrium interest rate?

Make sure to show any changes/shifts using colored pencils