Savings, Investment Spending, and the Financial System - End of Chapter Problem Congress estimated that the cost of increasing support and expanding pre-kindergarten education and infant and toddler child care would be $28 billion in 2014. Since the U.S. government was running a budget deficit at the time, assume that the new pr @Macmillan Learning K funding was financed by government borrowing. a. Shift one or both curves to reflect this development. Move the equilibrium point E to the new equilibrium. Interest rate X Quantity of loanable funds V b. How does the equilibrium interest rate change in response to government expenditure on the expanded pre-K programs