(a) What is the difference between the nominal Interest rate and the real Interest rate ? What is the formula for the real interest rate? (b) Assume that businesses are granted a tax credit on spending for machinery, Using a correctly labeled graph of the loanable funds market, describe the effect of the business sector's response on the real interest rate (c) Now assume instead that the tax rate on interest income from household savings is owered and there is no change in the government's budget deficit. Using a second correctly labeled graph of the loanable funds market, describe the effect of the household's response on the real interest rate. (d) What will happen to the country's production possibilities curve in the long run