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Figure: International Capital Flows
-(Figure: International Capital Flows) Look at the figure International Capital Flows. At an interest rate of 4%, the quantity of loanable funds demanded by British borrowers is _____ the quantity of loanable funds supplied by British lenders.

Question

Use the following to answer questions:
Figure: International Capital Flows 
-(Figure: International Capital Flows) Look at the figure International Capital Flows. At an interest rate of 4%, the quantity of loanable funds demanded by British borrowers is _____ the quantity of loanable funds supplied by British lenders.

Quizplus · Accepted Answer

At an interest rate of 4%, the quantity of loanable funds demanded by British borrowers is less than the quantity of loanable funds supplied by British lenders. This can be seen in the figure where the supply curve intersects the demand curve at an interest rate of 4%, and at this point, the quantity demanded is lower than the quantity supplied.

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