Using the market for loanable funds, show and explain what happens in each of the scenarios given below. Make sure you explain the new equilibrium.

a.People expect to live longer and wish to transfer purchasing power to the future.

b.In light of COVID-19, the government offers small firms two key subsidies on purchase of finished capital goods.

c.To plug the budget deficit, the government hikes up the tax rate on dividends received by households.

d.COVID-19 leads to a sharp contraction in the domestic economy and businesses halt construction of new plants