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Graphically Show each scenario of the market for loanable funds and graph the supply and demand for each of the 4 scenarios. Draw the shift
Graphically Show each scenario of the market for loanable funds and graph the supply and demand for each of the 4 scenarios. Draw the shift occurring( Supply or Demand) and explain what happens to the equilibrium interest rate in for each of the 4 scenarios: 1. A breakthrough in medical technology results in many hospitals wanting to buy new equipment. 2. The government budget deficit is reduced by 50 % 3. Foreign investors buy residential property in the United States 4. People around the world are worried about financial stability in their countries and choose to move their wealth to US financial markets. Real Interest rate Supply for loanable funds Demand for loanable funds Quantity of loanable funds
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