Figure 14-6

-Refer to Figure 14-6.The loanable funds market is in equilibrium,as shown in the figure above.An increase in the supply of loanable funds could result in which of the following combinations of the real interest rate and quantity of loanable funds at a new equilibrium?
A) The real interest rate is 5 percent, and the quantity of loanable funds is $150 million.
B) The real interest rate is 5 percent, and the quantity of loanable funds is $90 million.
C) The real interest rate is 3 percent, and the quantity of loanable funds is $150 million.
D) The real interest rate is 3 percent, and the quantity of loanable funds is $90 million.
Correct Answer:
Verified
Q141: The budget deficit is defined as
A)T -
Q143: An increase in public saving has what
Q144: A decrease in the real interest rate
Q145: The demand for loanable funds has a
Q149: Because _ in the government budget deficit
Q153: Figure 14-6 Q156: Economist Steve Landsburg has pointed out that Q157: An increase in government purchases will Q158: The federal budget deficit can be reduced Q160: Figure 14-6
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A)increase public
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