A country, let's call it Purduelia, is recovering from a severe economic recession. Unemployment is high, and businesses are struggling to secure financing to rebuild and expand. Against this backdrop, the government decides to implement a series of measures to stimulate economic growth. How would the Loanable Funds Theory explain the interactions between lenders and borrowers in this context? Moving beyond economic theories, analyze the Factors Impacting Interest Rates and Society. How might the government's fiscal and monetary policies influence interest rates? What role do inflation expectations play, and how do shifting perceptions of risk affect borrowing costs? Consider the societal implications: how do these changes in interest rates impact everyday citizens, from homeowners seeking mortgages to retirees relying on fixed-income investments?