(Solved): The graph shows the loanable funds market when there is neither a government budget surplus nor a g ...

The graph shows the loanable funds market when there is neither a government budget surplus nor a government budget deficit. Draw a point at the equilibrium quantity of loanable funds and the equilibrium real interest rate Label it 1. Now suppose that the government has a budget surplus of $1 trillion. Draw a curve that shows the effect of this surplus in the loanable funds market Label it Draw a point at the new equilibrium real interest rate and quantity of investment Labelit 2 Draw a point to show private saving when the government budget surplus is $1 trillion. Labelit 3. Etext pages Grapher 10 Real interest rate (percent per year) PSLF Clear all DLF Loanable funds (trilions of 2009 dollars) 2 Check answe