Use the following to answer questions:
-(Figure: Loanable Funds Market II)Use Figure: Loanable Funds Market II.Other things being equal,if there is an increase in the interest rate above 8%,_____ quantity of loanable funds will be demanded.

Question

Use the following to answer questions: 
-(Figure: Loanable Funds Market II)Use Figure: Loanable Funds Market II.Other things being equal,if there is an increase in the interest rate above 8%,_____ quantity of loanable funds will be demanded.

Quizplus · Accepted Answer

According to the graph, as the interest rate increases, the quantity of loanable funds demanded decreases. Therefore, if the interest rate increases above 8%, the quantity of loanable funds demanded would be smaller.

Use the Following to Answer Questions