Use the following to answer questions:
-(Figure: Loanable Funds Market II)Use Figure: Loanable Funds Market II.If the interest rate is lower than 8%,the quantity supplied of loanable funds will be _____ the quantity of loanable funds demanded.

Question

Use the following to answer questions: 
-(Figure: Loanable Funds Market II)Use Figure: Loanable Funds Market II.If the interest rate is lower than 8%,the quantity supplied of loanable funds will be _____ the quantity of loanable funds demanded.

Quizplus · Accepted Answer

If the interest rate is lower than 8%, the quantity supplied of loanable funds will be less than the quantity demanded, as lower interest rates typically decrease the incentive for lenders to supply funds.

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