Supply or Demand for Loanable Funds Scenario Sector Injection Molding Inc. borrows $130,000 to finance the purchase of injection molds for its next production cycle. North Texas Municipal Water District issues millions of dollars in bonds to help finance the upgrade of its water treatment plants. Supply Municipal Government Charles deposits a $1,500 paycheck into a savings account at the local credit union. A federal government runs a budget deficit and needs to issue bonds in order to compensate for the difference between tax revenue and government expenditures. Use the graph to show what happens to the municipal government's demand for loanable funds. ? Municipal Government Demand for Loanable Funds D m INTEREST RATES m2 D mt QUANTITY OF LOANABLE FUNDS Suppose Germany's government imposes a tax law that encourages households to save more money. Use the graph to show what happens to the foreign supply of loanable funds. ? Foreign Supply of Loanable Funds Sez SH S. INTEREST RATES QUANTITY OF LOANABLE FUNDS Supply or Demand for Loanable Funds Scenario Sector Injection Molding Inc. borrows $130,000 to finance the purchase of injection molds for its next production cycle. North Texas Municipal Water District issues millions of dollars in bonds to help finance the upgrade of its water treatment plants. Supply Municipal Government Charles deposits a $1,500 paycheck into a savings account at the local credit union. A federal government runs a budget deficit and needs to issue bonds in order to compensate for the difference between tax revenue and government expenditures. Use the graph to show what happens to the municipal government's demand for loanable funds. ? Municipal Government Demand for Loanable Funds D m INTEREST RATES m2 D mt QUANTITY OF LOANABLE FUNDS Suppose Germany's government imposes a tax law that encourages households to save more money. Use the graph to show what happens to the foreign supply of loanable funds. ? Foreign Supply of Loanable Funds Sez SH S. INTEREST RATES QUANTITY OF LOANABLE FUNDS