Consider a closed economy. Use the supply and demand for loan able funds model to predict the effects of the following events on interest rates and investment.
a. The government introduces a tax credit for savings accounts of up to $5000 per year.
b. The government introduces a tax credit for savings accounts of up to $5000 per year, and at the same time it repeals an investment tax exemption provision.
c. The government raises the tax rates.
d. The government issues bonds worth $10 billion.
(Which way does the supply and demand shift for each of the above- left or right?)