Figure 13-4. On the horizontal axis of the graph, L represents the quantity of loanable funds in billions of dollars.
-Refer to Figure 13-4. If the equilibrium quantity of loanable funds is $56 billion and if the rate of inflation is 5 percent, then the equilibrium nominal interest rate is
A)lower than 6 percent..
B)approximately 6 percent.
C)between 6 percent and 8 percent.
D)approximately 12 percent.

Question

Figure 13-4. On the horizontal axis of the graph, L represents the quantity of loanable funds in billions of dollars. 
-Refer to Figure 13-4. If the equilibrium quantity of loanable funds is $56 billion and if the rate of inflation is 5 percent, then the equilibrium nominal interest rate is
A)lower than 6 percent.. 
B)approximately 6 percent. 
C)between 6 percent and 8 percent. 
D)approximately 12 percent.

Quizplus · Accepted Answer

The Answer of Figure 13-4. On the horizontal axis of the graph, L represents the quantity of loanable funds in billions of dollars. 
-Refer to Figure 13-4. If the equilibrium quantity of loanable funds is $56 billion and if the rate of inflation is 5 percent, then the equilibrium nominal interest rate is
A)lower than 6 percent.. 
B)approximately 6 percent. 
C)between 6 percent and 8 percent. 
D)approximately 12 percent.