Section Ill The charts below depict lending and borrowing for the U.S. economy in late 2017: 1. The two quadrants above depict the U.S. loanable funds markets in late 2017. Label the curves and identify, on the graph, the equilibrium real corporate borrowing rate and the equilibrium quantity of lending to U.S. corporations. Likewise, identify the equilibrium quantity of borrowing by the U.S. government, and the equilibrium interest rate that households receive. What is the spread between the two equilibrium borrowing rates? President Trump, in late 2017, enacts a very large tax cut. The US. government, in 2018, needs to borrow 100% more than they did in 2017. In 2017 inflation expectations are 1.5%. In 2018, inflation rises and inflation expectations rise to 2.5%. a) In the government quadrant, adjust the picture to represent the change in government policy. Identify the new equilibrium interest rate, and the new equilibrium level of lending to the government. b) We now have a new equilibrium rg . How will that affect the loanable funds market for corporations