Use the following diagram to answer the following questions.
-Refer to Loanable Funds. If the demand for loanable funds is D₁, the equilibrium interest rate and quantity of funds are:
A) i₁ and F₁, respectively.
B) i₂ and F₂, respectively.
C) i₁ and F₂, respectively.
D) i₂ and F₁, respectively.
Correct Answer:
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