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Figure 321 Represents the Market for Loanable Funds

Question 43

Multiple Choice

Figure 32.1 represents the market for loanable funds.The equilibrium interest rate A) Is less than the rate of return on capital. B) Is greater than the rate of return on capital. C) Represents the price paid for the use of money. D) Is equal to the risk premium. Figure 32.1 represents the market for loanable funds.The equilibrium interest rate


A) Is less than the rate of return on capital.
B) Is greater than the rate of return on capital.
C) Represents the price paid for the use of money.
D) Is equal to the risk premium.

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