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Refer to the Following Graph to Answer the Following Questions

Question 29

Multiple Choice

Refer to the following graph to answer the following questions: Refer to the following graph to answer the following questions:   -Assuming the figure represents the market for loanable funds,it would be true that A)  line 1 represents savings (supply) ,and line 2 represents investment (demand) . B)  the vertical axis represents the interest rate,and the distance between points C and D represents the surplus of loanable funds at interest rate A. C)  line 1 represents investment demand,and line 2 represents savings. D)  the vertical axis represents the quantity of funds lent and borrowed,whereas the distance between points C and D represents the shortage of loanable funds at interest rate A. E)  line 1 represents the interest rate,and line 2 represents the quantity of savings.
-Assuming the figure represents the market for loanable funds,it would be true that


A) line 1 represents savings (supply) ,and line 2 represents investment (demand) .
B) the vertical axis represents the interest rate,and the distance between points C and D represents the surplus of loanable funds at interest rate A.
C) line 1 represents investment demand,and line 2 represents savings.
D) the vertical axis represents the quantity of funds lent and borrowed,whereas the distance between points C and D represents the shortage of loanable funds at interest rate A.
E) line 1 represents the interest rate,and line 2 represents the quantity of savings.

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