Refer to the following graph to answer the questions that follow.
-Assuming the figure represents the market for loanable funds,it would be true that:
A) line 1 represents savings (supply) , and line 2 represents investment (demand) .
B) the vertical axis represents the interest rate, and the distance between points C and D represents the surplus of loanable funds at interest rate A.
C) line 1 represents investment demand, and line 2 represents savings.
D) the vertical axis represents the quantity of funds loaned and borrowed, whereas the distance between points C and D represents the shortage of loanable funds at interest rate A.
E) line 1 represents the interest rate, and line 2 represents the quantity of savings.
Correct Answer:
Verified
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