Multiple Choice
Refer to the following graph to answer the questions that follow.
-Assuming the figure represents the market for loanable funds,and that point C represents 40 and point D represents 80,then it would be true that:
A) both points represent interest rates and there is a surplus of loanable funds at an 80% interest rate.
B) both points represent interest rates and there is a shortage of loanable funds at an 80% interest rate.
C) both points represent the quantity of loanable funds and there would be a surplus of loanable funds of 40 units.
D) both points represent the quantity of loanable funds and at interest rate A there would be a shortage of loanable funds of 40 units.
E) the quantity of loanable funds supplied exceeds the quantity demanded at interest rate B, if B represents an interest rate.
Correct Answer:

Verified
Correct Answer:
Verified
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