Figure 32-1
-Refer to Figure 32-1. In the figure shown, if the real interest rate is 4 percent, what is the quantity of loanable funds demanded?
A)$7000
B)$6000
C)$5000
D)$4000

Question

Figure 32-1 
-Refer to Figure 32-1. In the figure shown, if the real interest rate is 4 percent, what is the quantity of loanable funds demanded?
A)$7000 
B)$6000 
C)$5000 
D)$4000

Quizplus · Accepted Answer

At a real interest rate of 4 percent, the quantity of loanable funds demanded is where the quantity of loanable funds demanded equals the quantity of loanable funds supplied. From the graph, this occurs at a real interest rate of 4 percent and a quantity of $6,000. Therefore, the answer is B, $6,000.

Figure 32-1 -Refer to Figure 32-1. in the Figure Shown, If the Shown