Presidnet Donald Trump Plans to pass a $1 trillion infastructure spending bill. Use the loanable funds model to explain the net effect on nominal interest rates and nominal exchange rates. For example if the current 30-year Treasuary Bond has annual interest rate of 5% in which direction it is likely to move in the near future: 6% of 4%. Additionally if the Mexican Peso/$US Dollar exchange rate is currently 19.50 Pesos/$1 Dollar is likely to be 18.50 Pesos or 21.50 Pesos to each US Dollar (Remeber to use the loanable funds model for any credit.