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Question #3: Savings and Investment [8 Points] To combat the economic downturn that has resulted from the Coronavirus outbreak, Congress passed a $2.2 trillion dollar rescue package. Economists have noted that this rescue package will significantly increase the government budget deficit. (a) Graphically illustrate using the market for loanable funds the effect of an increase in the government budget deficit. In your graph, clearly label your axes and curves. Label the initial equilibrium as Point "A" and the new equilibrium as Point "B". [6 Points] (b) Based on your graph from Part (a) what happens to the equilibrium interest rate? Does it increase, decrease or remain constant? No explanation is required, however, you must have a relevant graph in Part (a) to receive credit. [1 Point] (c) Based on your graph from Part (a) what will happen to the level of investment in the U.S.? Does it increase, decrease or remain constant? No explanation is required, however, you must have a relevant graph in Part (a) to receive credit. [1 Point]