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Question 2 (Essay Worth 5 points) (04.01-04.07 HC) For allgraphs, be sure to correctly and...

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Economics

Question 2 (Essay Worth 5 points) (04.01-04.07 HC) For allgraphs, be sure to correctly and completely label all axes andcurves and use arrows to indicate the dir: on of any shifts. Theloanable funds market in an economy is in equilibrium. a. Draw acorrectly labeled graph of the loanable funds market, labeling theequilibrium real interest rate an he equilibrium quantity. b. Showthe impact of a decrease in the money supply for this economy inyour graph from part (a). c. Will the result be a shortage orsurplus in the loanable funds market at the original equilibrium?d. Will lenders of existing fixed-rate loans be better or worse offas a result of the change in the real intere: ate? e. How willinvestment spending on facilities and equipment in this economy beimpacted? Explain. Choose File no file selected

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