Problem
In the graph, draw a supply of loanable funds. Add a demand for loanable funds such that the equilibrium interest rate is 5 percent and the quantity of funds loaned is $100 billion per year. Show how an increase in demand for loanable funds arising from newfound optimism in the business community about future economic growth could increase the interest rate to 7 percent, while the amount of lending increases to $120 billion per year.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.