In the market for loanable funds depicted in the figure below, the equilibrium amount of loanable funds exchanged is _____.
Figure 13.2

Question

In the market for loanable funds depicted in the figure below, the equilibrium amount of loanable funds exchanged is _____.​ ​
Figure 13.2

Quizplus · Accepted Answer

The equilibrium of loanable funds is the point where the supply of loanable funds equals the demand for loanable funds. In this graph, the supply of loanable funds is shown as a vertical line at $4 million, while the demand for loanable funds is shown as a downward-sloping curve. The point where the supply curve intersects with the demand curve is the equilibrium, which is at $6 million. Therefore, the best choice is C) $6 million.

In the Market for Loanable Funds Depicted in the Figure