For each prompt below, carefully and thoroughly follow the directions. For the graphs, be certain to accurately label all axes, curves, and equilibria points. Use arrows to indicate the direction of any shifts.

A country is operating at full employment when its government lowers the tax rate on earnings from interest for household saving.

(a) Draw a fully labeled market for loanable funds, illustrating the impact of the tax rate change.

For each of the following scenarios, illustrate the impact on a fully labeled loanable funds graph.

(f) People in the economy increase their tendency to make big purchases through credit.

(g) The Federal Reserve raises its administered interest rates.

(h) There is a significant decrease in consumer and business confidence.