The graph represents the market for loanable funds in the hypothetical country of Bunko. Assume the market is initially Market for Loanable Funds in equilibrium and inflation expectations are 2%. 10 a. Adjust the graph to demonstrate the effects of inflation 9 expectations increasing from 2% to 4%. 8 S 7 b. What is the real interest rate after the change in Interest rate (%) inflation expectations? A 3% D 2 c. Which effect below characterizes the relationship 2 between inflation expectations and nominal interest 6 8 10 12 14 16 18 20 Quantity of loanable funds (billions of S) rates? The Fisher effect