Solved

-The Table Above Shows the Supply of Loanable Funds and
\text

Question 241

Essay

 Real interest rate  (percent per year)  Demand for loanable funds Supply of loanable funds  (billions of 2005 dollars)  (billions of 2005 dollars) 1071589136111141492177\begin{array} { c c c } \begin{array} { c } \text { Real interest rate } \\\text { (percent per year) }\end{array} & \begin{array} { c } \text { Demand for loanable funds Supply of loanable funds } \\\text { (billions of } 2005 \text { dollars) }\end{array} & \text { (billions of 2005 dollars) } \\\hline 10 & 7 & 15 \\8 & 9 & 13 \\6 & 11 & 11 \\4 & 14 & 9 \\2 & 17 & 7 \\\hline\end{array}
-The table above shows the supply of loanable funds and the demand for loanable funds schedules.
a. What is the equilibrium real interest rate and the equilibrium quantity of loanable funds?
b. If the real interest rate is 4 percent, is there a shortage or surplus?
What will happen in the market?

Correct Answer:

verifed

Verified

a. The equilibrium real interest rate is...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents