Figure 26-4.On the horizontal axis of the graph,L represents the quantity of loanable funds in billions of dollars.
-Refer to Figure 26-4.Regard the position of the Supply curve as fixed,as on the graph.If the real interest rate is 4 percent,the inflation rate is 2 percent,and the market for loanable funds is in equilibrium,then the position of the demand-for-loanable-funds curve must be

Question

Figure 26-4.On the horizontal axis of the graph,L represents the quantity of loanable funds in billions of dollars.

-Refer to Figure 26-4.Regard the position of the Supply curve as fixed,as on the graph.If the real interest rate is 4 percent,the inflation rate is 2 percent,and the market for loanable funds is in equilibrium,then the position of the demand-for-loanable-funds curve must be

Quizplus · Accepted Answer

The Answer of Figure 26-4.On the horizontal axis of the graph,L represents the quantity of loanable funds in billions of dollars. -Refer to Figure 26-4.Regard the position of the Supply curve as fixed,as on the graph.If the real interest rate is 4 percent,the inflation rate is 2 percent,and the market for loanable funds is in equilibrium,then the position of the demand-for-loanable-funds curve must be A) D₁ . B) D₂ . C)between D₁ and D₂ . D)to the left of D₁.