Part 1: Graphing the Loanable Funds Market Assignment Show the changes for each scenario on a properly drawn and labeled loanable funds market graph. Then describe what happened to real interest rates and the quantity of loanable funds. Each question is worth two points, one point for your graph and one for your description of what hannaned Scanario Graph Explanation As the government is preparing to pay for war, S1 supply is going to go Real down in order save more Interest money. Rate 1. The r1 government is preparing to run a 12 deficit in order to pay for a war. D1 Quantity of Q1 Q2 Loanable Funds