Suppose the government borrows $20 bilion more next year them this year The following graph show the market for loanable funds before the additional borrowing for next year The the orange line (square paint) to graph the new supply of lemaide funds as a result of this government palsy to borrow $6 finkin more next year than this year Supply Now Supply Loanable Funds Clubons of dolan)Loanable Funds (Bitions of dollars) As a result of this policy, the equilibrium interest rate rises Which of the following statements accurately describe the effect of the increase in government borrowing? Check all that apply. Investment decreases by more than $20 billion. National saving decreases by less than $20 billion. Public saving decreases by less than $20 billion. Private saving increases by less than $20 billion. A more elastic supply of loanable funds would result in national saving changing by _ as a result of the increase in government borrowing The increase in government borrowing would result in a smaller change in the interest rate if the demand for loanable funds is " elastic, Suppose households believe that greater government borrowing today implies higher taxes to pay off the government debt in the future. This belief would cause people to save _ today, which would private saving and the supply of loanable funds. This would the effect of the reduction in public saving on the market for loanable funds