Economics Homework Help

The article below is a part ofthe myRA account debate. The funds deposited in myRA/IRA accounts are not subject to taxation until withdrawal, which can happen without penalty only after the program participants reach the age of 59. The new retirement account, myRA,would replace the current saver’s tax credit with a federal 401k–style match for middle–and low–income workers.

Tasks:

Relax the assumption of inelastic supply of loanable funds, that is,assume supply is elastic.

1. Draw the new loanable funds market diagram(Excel) and illustrate the expected effect of the myRA introduction.

2. Label both axes, all curves, and write out expressions for demand and supply of loanable funds.

3. Explain the economic meaning of the slope of the supply curve. Express the slope of each curve using derivatives.

Please provide explanation!!!!!!