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For each of the following scenarios, use a correctly labeled graph to show how the market for loanable funds is affected. Show in your graph
For each of the following scenarios, use a correctly labeled graph to show how the market for loanable funds is affected. Show in your graph the impact on the equilibrium real interest rate and quantity of loanable funds.
1. Congress enacts expansionary fiscal policy but does not change tax rates.
2. The Federal government announces an annual budget surplus.
3. Congress decreases tax rates on personal savings.
4. The flow of foreign financial capital into American financial markets begins to decrease.
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