Use the following to answer questions:
-(Figure: The Loanable Funds Model in the U.S. Market) Refer to Figure: The Loanable Funds Model in the U.S. Market. If the actual interest rate is less than 4% in the U.S. market, then the quantity supplied of loanable funds will be _____ the quantity of loanable funds demanded.

Question

Use the following to answer questions: 
-(Figure: The Loanable Funds Model in the U.S. Market) Refer to Figure: The Loanable Funds Model in the U.S. Market. If the actual interest rate is less than 4% in the U.S. market, then the quantity supplied of loanable funds will be _____ the quantity of loanable funds demanded.

Quizplus · Accepted Answer

According to the graph, at an interest rate less than 4%, the quantity supplied of loanable funds is less than the quantity of loanable funds demanded. Therefore, the best choice is B, which indicates that the quantity supplied is less than the quantity demanded.

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