Question: write your answer in the space on this webpage). Question 14 (6 points) The Australian Government passed a new law in backing business investment in

 write your answer in the space on this webpage). Question 14

(6 points) The Australian Government passed a new law in backing business

write your answer in the space on this webpage). Question 14 (6 points) The Australian Government passed a new law in backing business investment in which businesses with an aggregated turnover of less than $700 million are able to accelerate their depreciation deductions on the purchase of certain new depreciable assets. This applies to eligible assets acquired and first used or installed ready for use during the financial year 2018-2019. Figure 3: Loanable funds markets (Diagram E & F) Diagram E Diagram F Interest | Line 1 Interest rate Line 2 rate Line 1 R* R* R# R# Line 2 Line 3 Line 3 Q* Q# Loanable funds Q* Q# Loanable funds (a) Identify which diagram (Diagram E or F) in Figure 3 represents a loanable funds market in the financial year 2018-2019 when the government passed this new law in backing business investment. (b) Using your selected diagram in Question 14(a), illustrate and explain how this new law passed by the Australian Government affects interest rate, saving and investment in the domestic economy. Question 15 (5 points)

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