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Economics. TransCanada Deal with U.S. Carrier Worth $13 Billion Real interest rate (percent per year) 10.0- TransCanada working with Columbia Pipeline Group aims to create

Economics.

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TransCanada Deal with U.S. Carrier Worth $13 Billion Real interest rate (percent per year) 10.0- TransCanada working with Columbia Pipeline Group aims to create a giant natural gas transmission business. The deal SLFO will create a 91,000-kilometer natural gas pipeline system. 9.0- Source: The Toronto Star, March 18, 2016 8.0- Show on a graph the effect of TransCanada going to the loanable funds market to finance the deal with Columbia 7.0- Explain the effect on the real interest rate, private saving, and investment. 6.0- The graph shows the market for loanable funds. Draw a curve to show the effect of TransCanada going to the loanable funds market to finance the building of its pipeline. 4.0- Draw a point to show the new equilibrium in the loanable funds market. 3.0- 2.0- 1.0- DLFO 0.0- :10 8 12 Loanable funds (billions of dollars) 16 20 32> Draw only the objects specified in the

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