Exhibit: Loanable Funds and Capital Markets Interest rate Panel (a) Interest rate Panel (b) (percent) (percent) Quantity of loanable Ky Ka Quantity of capital per funds per perlod period Panel (c) Panel (d) Interest rate Interest rate (percent) X. Quantity of loanable Quantity of capital per funds per period perlod A decrease in saving and a: O subsequent rise In the supply of loanable funds Is shown in Panel [c). O fall in the supply of loanable funds Is shown In Panel (c). O subsequent Increase In the demand for capital Is shown In Panel(b). " rise in the Interest rate is shown In Panel (d) as a movement along the demand for financial capital curve from a lower interest rate to a higher Interest rate