Graphically illustrate using the market for loanable funds the effect of the following scenarios. Label the initial equilibrium point as "Point A" and the new as "Point B."

(a) Suppose that the Alabama legislature passes a law that lowers income taxes.One consequence of this new law is that interest earned on savings accounts and bonds will now be taxed at a lower tax rate.

*****It is not asking for exact numbers on the graph, just a representation of how the graph, in this case, would look like.