1. Suppose productivity in Happyland increases. Using a correctly labeled loanable funds graph, show and explain how the increase in productivity will affect the loanable funds market in Happyland.
2. Explain how the change in interest rates from part A will affect each of the following.

i . capital investment

ii. Long-term economic growth

1. Explain how the change in interest rates from part A will affect the international value of Happyland's dollar.

Happyland is just the name of the country.