(Merriam In lecture 4 we discussed the demand and supply of loanable funds extensively. Use the concept to answer this question. If the government of the lGambia receives tax revenue of DB billion. it turns out that it spends D14 billion to nance its activities during the same fiscal year. With the aid of a diagram. illustrate the effect of the above Scenario on the demand and supply of loanable funds. Briey explain how firms and households will be affected. QUESTION: Suppose that the government of the Gambia through the Gambia Revenue Authority {GM} and its line ministry {Ministry of Finance and Economic Affairs- Moth decide to effect a d'iange in the tax system that might increase Private Savings. If the policy was debated and eventually implemented. would it affect the market for loanable funds? Justify your answer with a graph. Quesnoua Given that the GDP of the Gambia is D2 billion. taxes are D3!!! billion. private savings DUE billion and public savings is Dill billion. Supposed that the NX-D. calculate Consumption. Government Purchases. National Savings