Use the following to answer questions: Figure: Loanable Funds Market
-(Figure: Loanable Funds Market) Refer to the figure of the loanable funds market. This market will be in equilibrium when the interest rate is _____ and the quantity of loanable funds is _____.
A) 3%; $180
B) 4.5%; $180
C) 4.5%; $250
D) 6%; $500

Question

Use the following to answer questions: Figure: Loanable Funds Market 
-(Figure: Loanable Funds Market) Refer to the figure of the loanable funds market. This market will be in equilibrium when the interest rate is _____ and the quantity of loanable funds is _____.
A) 3%; $180 
B) 4.5%; $180 
C) 4.5%; $250 
D) 6%; $500

Quizplus · Accepted Answer

The market for loanable funds is in equilibrium where the supply and demand for loanable funds intersect. At an interest rate of 4.5%, the quantity of loanable funds is $250, indicating equilibrium.

Use the Following to Answer Questions: Figure: Loanable Funds Market