The loanable funds theory says that factors affecting the supply and demand for loanoble funds explain the fuctuations in the market interest rate Before examining the market for loanable funds in its entirety, it's important to understand its individual components: Use the following table to determine whether eoch financial maricet participant contributes to the supply of loanable funds or the demand for loanable funds in each scenario. Then determine which sector the financial market participant contributes to: business, federal government, foreign, household, or municipal government. Mint: In each scenario, the United.States is the domestic country. Suppose Congress institutes an investment tax credit, which gives a tax break to any business constructing a new facility or purchasing a new piece of equipment. Use the graph to show what happens to the busines' demand for foanable funds. Suppose there is a change in the tax law that discourages households from saving money. Use the graph to show what happens to the household supply of loanable funds