-Refer to Figure 8-4.Based on these graphs,what are the equilibrium interest rate and quantity of loanable funds exchanged?
A) 5 percent and $1.4 trillion
B) 5 percent and $2.2 trillion
C) 8 percent and $1.8 trillion
D) 8 percent and $2.8 trillion
E) It cannot be determined with the information given.

Question

-Refer to Figure 8-4.Based on these graphs,what are the equilibrium interest rate and quantity of loanable funds exchanged?
A) 5 percent and $1.4 trillion 
B) 5 percent and $2.2 trillion 
C) 8 percent and $1.8 trillion 
D) 8 percent and $2.8 trillion 
E) It cannot be determined with the information given.

Quizplus · Accepted Answer

The equilibrium interest rate and quantity of loanable funds are determined where the supply and demand curves intersect, which is at 8 percent and $1.8 trillion.