1. In each of the following cases, draw a graph showing an increase or decrease in...

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1. In each of the following cases, draw a graph showing an increase or decrease in equilibrium interest rates. a. Suppose the demand for loanable funds remains unchanged. Will the equilibrium interest rates increase or decrease if there is an economic expansion? (3 points) b. Suppose the supply of loanable funds remains unchanged. Will the equilibrium interest rates increase or decrease if the nonprice conditions become more restrictive? (3 points) 1. In each of the following cases, draw a graph showing an increase or decrease in equilibrium interest rates. a. Suppose the demand for loanable funds remains unchanged. Will the equilibrium interest rates increase or decrease if there is an economic expansion? (3 points) b. Suppose the supply of loanable funds remains unchanged. Will the equilibrium interest rates increase or decrease if the nonprice conditions become more restrictive? (3 points)

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Answer In the case of an economic expansion with unchanged demand for loanable funds the equilibrium ... View the full answer