Multiple Choice
Refer to the following graph to answer the following questions:
-Assuming the figure represents the market for loanable funds,and that point C represents $40 million and point D represents $70 million,then it would be true that
A) at interest rate A,the market is in equilibrium.
B) at interest rate A,there is a surplus of $30 million of loanable funds.
C) at interest rate A,there is a shortage of $30 million of loanable funds.
D) because there is a disequilibrium at interest rate A,interest rates must fall.
E) the interest rate represented by A must be greater than that represented by B.
Correct Answer:

Verified
Correct Answer:
Verified
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