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  3. Study Set
    Principles of Economics Study Set 2
  4. Exam
    Exam 32: A Macroeconomic Theory of the Open Economy
  5. Question
    In the Graph Below, If the Real Interest Rate Is
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In the Graph Below, If the Real Interest Rate Is

Question 3

Question 3

Multiple Choice

In the graph below, if the real interest rate is R1, the quantity of loanable funds demanded is: In the graph below, if the real interest rate is R<sub>1</sub>, the quantity of loanable funds demanded is:    A)  Q<sub>0</sub> and the quantity supplied is Q<sub>0</sub> B)  Q<sub>2</sub> and the quantity supplied is Q<sub>0</sub> C)  Q<sub>2</sub> and the quantity supplied is Q<sub>1</sub> D)  Q<sub>0</sub>and the quantity supplied is Q<sub>1</sub> E)  Q<sub>1</sub> and the quantity supplied is Q<sub>2</sub>


A) Q0 and the quantity supplied is Q0
B) Q2 and the quantity supplied is Q0
C) Q2 and the quantity supplied is Q1
D) Q0and the quantity supplied is Q1
E) Q1 and the quantity supplied is Q2

Correct Answer:

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