Questions: Sorry, but you didn't provide any actual question content related to "INTEREST RATE (Percent)" from the OCR-processed text. Could you please provide the specific question or information you need extracted?

Sorry, but you didn't provide any actual question content related to "INTEREST RATE (Percent)" from the OCR-processed text. Could you please provide the specific question or information you need extracted?

Transcript text: Sorry, but you didn't provide any actual question content related to "INTEREST RATE (Percent)" from the OCR-processed text. Could you please provide the specific question or information you need extracted?

Solution

Solution Steps

Step 1: Identify the Initial Point

The problem states that we start at point A on the graph. Point A is where the initial supply and demand curves (S1 and D1) intersect.

Step 2: Understand the Change

The problem mentions a change in tax laws that encourages households to save more. This would increase the supply of loanable funds, shifting the supply curve to the right.

Step 3: Determine the New Equilibrium

With the supply curve shifting to the right from S1 to S2, the new equilibrium point will be where the new supply curve (S2) intersects the original demand curve (D1). This new intersection point is point B.