Figure 13-1

-Refer to the FigurE₁3-1.In the figure shown,if the real interest rate is 4 percent,what is the quantity of loanable funds demanded?
A)$7000
B)$6000
C)$5000
D)$4000

Question

Figure 13-1
 
-Refer to the FigurE₁3-1.In the figure shown,if the real interest rate is 4 percent,what is the quantity of loanable funds demanded?
A)$7000 
B)$6000 
C)$5000 
D)$4000

Quizplus · Accepted Answer

At a real interest rate of 4%, the quantity of loanable funds demanded is the point where the loanable funds demanded curve intersects the vertical line representing the real interest rate of 4%. From the graph, we can see that at a real interest rate of 4%, the quantity of loanable funds demanded is approximately $6000. Therefore, the best choice is B.

Figure 13-1 -Refer to the FigurE₁3-1.In the Figure Shown,if the Real Interest