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You are required to take help from the Book of Mankiw and solve the above two Policy scenarios separately. You are required to edit graph

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You are required to take help from the "Book of Mankiw" and solve the above two Policy scenarios separately. You are required to edit graph and then explain it in detail after incorporating changes in policy-2, as policy-1 has been solved already. You are just required to explain policy-1 in few lines in your own words. While for Policy-2 first read the chapter and then edit the graph given. After incorporating changes/shifting, explain policy-2 in your own words. 26-3b-Policy 1: Saving Incentives (pg. 551) Interest Rate SI Tax incentives for saving increase S2 the supply of loanable funds ...which reduces the equilibrium 5% interest rate 4% and increases the equilibrium quantity of loanable funds D, 60 70 Loanable Funds ($billions) Explain in your own words: (in few lines)

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