Question: 9. Consider how the scenario in the previous question will affect the market for loanable funds. Use the graph below to assist with the answers.

9. Consider how the scenario in the previous question will affect the market for loanable funds. Use the graph below to assist with the answers. (Choose the appropriate answers below.) a. The supply of savings/investment demand will shift to the left/right. b. Equilibrium interest rates will increase/decrease and the quantity of investment will increase/decrease. 10. Consider how these changes will affect the real economy. Choose the appropriate answers in the statements below. Price Level LHAS Real GDP a. The aggregate demand/short run aggregate supply curve will shift left/right. b. The short run equilibrium price level will increase/decrease and real GDP will Increase/decrease

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