Figure 21-6 
-Refer to Figure 21-6. 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
Q143: An increase in public saving has what
Q144: A decrease in the real interest rate
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Q148: Equilibrium in the loanable funds market determines
A)the
Q150: Figure 21-6 Q150: An increase in the real interest rate
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