Figure 32-1
-Refer to Figure 32-1.In the Figure shown,if the real interest rate is 6 percent,the quantity of loanable funds demanded is
A) $20 billion,and the quantity supplied is $40 billion.
B) $20 billion,and the quantity supplied is $60 billion.
C) $60 billion,and the quantity supplied is $20 billion.
D) $60 billion,and the quantity supplied is $40 billion.

Question

Figure 32-1 
-Refer to Figure 32-1.In the Figure shown,if the real interest rate is 6 percent,the quantity of loanable funds demanded is
A) $20 billion,and the quantity supplied is $40 billion. 
B) $20 billion,and the quantity supplied is $60 billion. 
C) $60 billion,and the quantity supplied is $20 billion. 
D) $60 billion,and the quantity supplied is $40 billion.

Quizplus · Accepted Answer

At a real interest rate of 6 percent, the demand for loanable funds is $20 billion (point A), while the supply of loanable funds is $60 billion (point B). Therefore, the best choice is B, as it correctly identifies the quantity of loanable funds demanded and supplied at the given interest rate.

Figure 32-1 -Refer to Figure 32-1.In the Figure Shown,if the Real Interest