scenario 1: less/more. greater than/less than. downward/upward. decrease/increase.

scenario 2: less/more. greater than/less than. downward/upward. decrease/increase.

please show explanation for graph change would be very helpful thanks!!

4. Factors that affect equilibrium in the market for loanablefunds For each of the given scenarios, use the graphs to (1) show what happens in the market for loanable funds and (2) help answer the questions that follow. Scenario 1: Suppose savers either buy bonds or make deposits in savings accounts at depository institutions. Initially, the interest income earned on bonds or deposits is taxed at a rate of 20%. Now suppose there is an increase in the tax rate on interest income, from 20% to 25%. Market for Loanable Funds SA INTEREST RATE Market for Loanable Funds 5 O INTEREST RATE ON LOANABLE FUNDS the quantity This change causes savers to supply of loanable funds demanded, there is quantity of loanable funds demanded. Ioanable funds. Because the quantity of Ioanable funds supplied is now pressure on interest rates. This change in interest rates causes a(n) in the Scenario 2: An investment tax credit effectively lowers the taxes paid by firms that purchase new equipment or build a new manufacturing facility. Suppose the government repeals a previously existing Investment tax credit. Market for Loanable Funds DA INTEREST RATE LOANABLE FUNDS Market for Loanable Funds S DA INTEREST RATE LOANABLE FUNDS The repeal of a previously existing tax credit causes borrowers to demand the quantity of loanable funds supplied, there is causes a(n) in the quantity of loanable funds supplied. loanable funds. Because the quantity of loanable funds demanded is pressure on interest rates. This change in interest rates now