Investment, Saving and the Real Interest Rate. a) Draw the diagram for the loanable funds model. In particular, assume that the market for loanable funds is in equilibrium and that both investment and national saving depend on the real interest rate, r. Be sure to label the axes, curves and equilibrium values. b) On the same diagram, graph the impact of the implementation of a policy that increases one's incentive to save for retirement (similar to Canada's RRSP program). Be sure to: label the axes, curves and equilibrium values; and clearly indicate any changes to curves or equilibrium values from part a to part b. [Note: Students will upload a scan or picture of the completed diagram.] A ! E E O