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Figure: Loanable Funds Market

-(Figure: Loanable Funds Market)Refer to the figure of the loanable funds market.At an interest rate of 3% in this market,there is a _____ of loanable funds of _____.
A) shortage;$320
B) surplus;$250
C) shortage;$250
D) surplus;$320

Question

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Figure: Loanable Funds Market

-(Figure: Loanable Funds Market)Refer to the figure of the loanable funds market.At an interest rate of 3% in this market,there is a _____ of loanable funds of _____.
A) shortage;$320 
B) surplus;$250 
C) shortage;$250 
D) surplus;$320

Quizplus · Accepted Answer

At an interest rate of 3%, the quantity of loanable funds demanded is $570, while the quantity of loanable funds supplied is $250. This indicates a shortage of loanable funds of $320.

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