Demand or supply for real loanable funds

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In the graphs below, show the shift in either demand or supply for real loanable funds by drawing in a new curve. Write short explanation of the change in the real risk free interest rate (Y-axis) and the real loanable funds per time period (X-axis). a. The central bank engages in Open Market purchases of government securities. b. The US Treasury Department borrows money to finance infrastructure building. c. The US Federal Reserve Bank increases the monetary base and the Treasury Department simultaneously borrows to finance an increasing government deficit.

Reference no: EM131169535

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