-In the figure above, the SLF curve is the supply of loanable funds curve and the PSLF curve is the private supply of loanable funds curve. The equilibrium interest rate is ________ per cent and the equilibrium quantity of loanable funds is ________.
A) 6; $2.0 trillion
B) 4; $1.8 trillion
C) 4; $1.4 trillion
D) 6; $1.6 trillion
E) 4; $2.0 trillion

Question

-In the figure above, the SLF curve is the supply of loanable funds curve and the PSLF curve is the private supply of loanable funds curve. The equilibrium interest rate is ________ per cent and the equilibrium quantity of loanable funds is ________.
A) 6; $2.0 trillion 
B) 4; $1.8 trillion 
C) 4; $1.4 trillion 
D) 6; $1.6 trillion 
E) 4; $2.0 trillion

Quizplus · Accepted Answer

The equilibrium interest rate and quantity of loanable funds are determined at the point where the supply and demand curves intersect. In this case, the correct answer is 4% interest rate and $1.8 trillion in loanable funds, which corresponds to the intersection point on the graph provided.

-In the Figure Above, the SLF Curve Is the Supply