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Figure 7.3.1 Refer to Figure 7.3.1, which shows the market for loanab...

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Short Description: A line graph of real interest rate versus loanable funds. Long Description: The vertical axis is labelled, real interest rate (percent per year) and ranges from 0 to 4 in increments of 1. The horizontal axis is labelled, loanable funds (billions of 20 12 dollars) and ranges from 0 to 30 in increments of 5. The line for D L F slopes downward from the upper left corner to the lower right corner passing through the points (20, 3) and (25, 2). The line for S L F slopes upward from the lower left corner to the upper right corner passing through the point (25, 2). The line for P S L F slopes upward from the lower left corner to the upper right corner, parallel to the line for S L F on the top and passing through the points (15, 2) and (20, 3).

Figure 7.3.1

Refer to Figure 7.3.1, which shows the market for loanable funds. What impact has the government's budget had on the market outcome?
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