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Due to increased tax revenue, the government of Country GPT runs a budget surplus. 1. Usinga correctly labeled graph of the loanable funds market, show

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Due to increased tax revenue, the government of Country GPT runs a budget surplus. 1. Usinga correctly labeled graph of the loanable funds market, show the effect of this government's budget surplus on real interest rates. (2 points) Based upon your graph in the previous question, will businesses in GPT see an increase or decrease in investment? (1 point) Country GPT's currency, the dollar, and Country Klosterman''s currency, the Euro, have currencies that are determined in a flexible exchange market. Using a correctly labeled foreign exchange market graph, show how the interest rate change you identified in questson 1, impacts the international value of GPT's dollar. (2 points) Given your answer to question 3, which country will see an increase in exports to the other country? Explain. (1 point)

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