Figure 32-1

-Refer to Figure 32-1.In the Figure shown,if the real interest rate is 1 percent,there will be a
A)surplus of $10 billion.
B)surplus of $20 billion.
C)shortage of $10 billion.
D)shortage of $20 billion.

Question

Figure 32-1
 
-Refer to Figure 32-1.In the Figure shown,if the real interest rate is 1 percent,there will be a
A)surplus of $10 billion. 
B)surplus of $20 billion. 
C)shortage of $10 billion. 
D)shortage of $20 billion.

Quizplus · Accepted Answer

If the real interest rate is 1 percent, the demand for loanable funds exceeds the supply by $20 billion, resulting in a shortage.

Figure 32-1 -Refer to Figure 32-1.In the Figure Shown,if the Real Interest