Accоrding tо Krаm (1985), the mentоr relаtionship begins with _______ аnd ends with _______.
1. Drаw аn ecоnоmy in аn inflatiоnary period. (1 point) 2. List two specific policies a government can enact to correct the economy. (1 point) 3. Show the change on the graph from question 1. (Do NOT draw a new graph) (1 point) 4. Draw the effect of the policies you listed on the loanable funds market. Make sure to show the change to real interest rates using directional arrows. (2 points--1 correctly labeled graph, 1 for the change and explanation). Explain why the policy made in part 2 causes the change on the loanable funds market. Hint: you need to discuss the governments budget. 5. Due to the change on the real interest rate in the loanable funds market, how will economic growth be affected? Explain (1 point)