Use the following to answer questions :
Figure: The Market for Loanable Funds II 
-(Figure: The Market for Loanable Funds II) Look at the figure The Market for Loanable Funds II. An increase in government borrowing will shift the demand for loanable funds to the _____ and _____ the interest rate.
Definitions:
Security Market Line
A representation in the Capital Asset Pricing Model (CAPM) that displays the risk versus expected return of the market at any given time.
Beta Coefficient
A measure of a stock's volatility or risk relative to the overall market.
Market Risk Premium
The extra return expected by investors for holding a risky market portfolio instead of risk-free securities.
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