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I need your help The accompanying graph represents the market for loanable funds in the hypothetical country of Bunko. Assume the Market for Loanable Funds

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The accompanying graph represents the market for loanable funds in the hypothetical country of Bunko. Assume the Market for Loanable Funds market is initially in equilibrium and inflation expectations 10 are 2%. 9 a. Adjust the graph to demonstrate the effects of inflation CO expectations increasing from 2% to 4%. S 6 Interest rate (%) b. What is the real interest rate after the change in inflation expectations? 4 O 3% D O 5% O 2% O 7% 0 2 4 6 8 10 12 14 16 18 20 Quantity of loanable funds (billions of $)c. Which effect below characterizes the relationship between inflation expectations and nominal interest rates? O The Leontief Paradox The Pigou effect The Inflation effect The Fisher effect

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