
-The figure above shows the loanable funds market. At an interest rate of
A) 6 per cent, savers will exit the market because the return to saving is too low.
B) 8 per cent, the quantity of loanable funds supplied is $14 trillion.
C) 8 per cent, the quantity demanded of loanable funds is $18 trillion.
D) 4 per cent, there is a surplus of loanable funds.
E) 4 per cent, there is a shortage of loanable funds.
Correct Answer:
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Q52: A fall in the real interest rate
Q53: Which of the following factors changes saving
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