Explain clearly

5. Assume the supply and demand of loanable funds have the usual slopes. What are the predicted short-run effects of a policy increasing government expenditures by $100 but leaving tax revenues constant? a) Nominal interest rates increase. Loans to firms increase. b) Nominal interest rates increase. Loans to firms decrease. c) Nominal interest rates decrease. Loans to firms increase. d) Nominal interest rates decrease. Loans to firms decrease. e Nominal interest rates decrease. Loans to firms may increase or decrease