Suppose the loanable funds supplied by private households (SP) is i=2+0.01LF where i is interest rate in percentage term and LF is amount of loanable funds. The demand for loanable funds (DLF) is i=7-0.01LF. (b) If a new "pro long-run economic growth" political party has been elected and turns the government budget into a deficit of 100 because of dramatic increases in public employee salaries and benefits. Draw and Explain how to determine the new equilibrium interest rate i', national savings S', and investment I'. TITT 7 6 LLIILI L L III TITI 5- ETTTT IT TITT TTT TTT +++-t E+++-+ LLII LL LLLLI IITTT 2 ITTTTT TTT t+++ F+++++ E+++ ++ -200 -100 100 200 300 400 500 600 LF LLL. LLIII LLLii LLLI. LLL LLI IIIII TTTTI TTTT TTT ++++ +++ ttt LLL LLLI. LLLII LLII LLIIII T|||| TTTT TT T EEt+++ T++++ ++++ ++++ ++ tt++ tttt LLLI LLLII. LLLLL1 LLLLI. LLLI. LLLII LLLII 3. TTTT TTT TTTT ++++ +++++ FFFF+++ +++++ +++