The figure above shows the loanable funds market.
-At an interest rate of
A) 8 percent the quantity of loanable funds supplied is $14 trillion.
B) 6 percent savers will exit the market because the reward to saving is too low.
C) 4 percent there is a surplus of loanable funds.
D) 8 percent the quantity demanded of loanable funds is $18 trillion.
E) 4 percent there is a shortage of loanable funds.
Correct Answer:
Verified
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