Question: 30. Demonstrate graphically what the Loanable Funds Model would predict about the change in U.S. interest rates if the following headline appeared in the

30. Demonstrate graphically what the Loanable Funds Model would predict about the change in U.S. interest rates if the following headline appeared in the Wall Street Journal. "In a surprise move, OPEC countries have agreed to cut oil production from 20 million barrels a day to 10 million barrels a day."

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