Figure 21-1
-Refer to Figure 21-1.The loanable funds market is given in the figure above.If the current real interest rate is 5 percent,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.
Correct Answer:
Verified
Q70: Figure 21-1 Q77: Figure 21-1 Q142: The supply of loanable funds has a Q144: A decrease in the real interest rate Q145: The demand for loanable funds has a Q152: If technological change increases the profitability of Q156: Economist Steve Landsburg has pointed out that Q158: The federal budget deficit can be reduced Q161: An increase in the government budget surplus Q169: An increase in the government budget deficit
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