Refer to Figure 5.1 for the following questions.
Figure 5.1

-Refer to Figure 5.1. If the current real interest rate is 5%, which of the following is true?
A)The loanable funds market is in equilibrium.
B)There is a surplus of loanable funds in the market.
C)There is a shortage of loanable funds in the market.
D)The quantity of loanable funds being demanded in the market is less than $90 million.

Question

Refer to Figure 5.1 for the following questions.
Figure 5.1
 
-Refer to Figure 5.1. If the current real interest rate is 5%, which of the following is true?
A)The loanable funds market is in equilibrium. 
B)There is a surplus of loanable funds in the market. 
C)There is a shortage of loanable funds in the market. 
D)The quantity of loanable funds being demanded in the market is less than $90 million.

Quizplus · Accepted Answer

At a 5% real interest rate, if the quantity supplied of loanable funds is greater than the quantity demanded, it indicates a surplus of loanable funds in the market.

Refer to Figure 5.1 for the Following Questions