First Call, Inc., is a cellular phone company. It plans to build an assembly plant that costs $10 million if the interest rate is 6 percent a year. If the interest rate is 5 percent a year, First Call will build a larger plant that costs $12 million. And if the interest rate is 7 percent a year, First Call will build a smaller plant that costs $8 million.

#2 First Call, Inc., is a cellular phone company. It plans to build an assembly plant that costs $10 million if the interest rate is 6 percent a year. If the interest rate is 5 percent a year, First Call will build a larger plant that costs $12 million. And if the interest rate is 7 percent a year, First Call will build a smaller plant that costs $8 million a) b) Draw a graph of First Call's demand for loanable funds curve. First Call expects its profit from the sale of phones to double next year. If other things remain the same, explain how this increase in expected profit influences First Call's demand for loanable funds Draw a graph to illustrate how an increase in the supply of loanable funds and a decrease in the demand for loanable funds can lower the interest rate and leave the equilibrium quantity of loanable funds unchanged. c)