Using the graphs below and the pre-defined curves for you to move into place, DO NOT INTERPRET THE FACT THAT THERE IS AN $2 and D2 TO MEAN YOU HAVE TO MOVE BOTH CURVES Make sure that you also provide a typed response 1. The following was just announced just prior to the exam starting, "The Biden administration has finally decided to re-open drilling in the U.S. that will allow for an additional 20% of oil production to begin." In both graphical form and in words, explain what the Loanable Funds model would predict about the direction of interest rates. $2 D2 IR'S $1 DN Qty of Loanable FundsUsing the graphs below and the pre-defined curves for you to move into place, DO NOT INTERPRET THE FACT THAT THERE IS AN $2 and D2 TO MEAN YOU HAVE TO MOVE BOTH CURVES Make sure that you also provide a typed response 1. The following was just announced just prior to the exam starting, "The Biden administration has finally decided to re-open drilling in the U.S. that will allow for an additional 20% of oil production to begin." In both graphical form and in words, explain what the Loanable Funds model would predict about the direction of interest rates. $2 D2 IR'S $1 DN Qty of Loanable Funds