Solved

Figure 26-4

Question 40

Multiple Choice

Figure 26-4.On the horizontal axis of the graph,L represents the quantity of loanable funds in billions of dollars. 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 8 percent,the inflation rate is 3 percent,and the market for loanable funds is in equilibrium,then the position of the demand-for-loanable-funds curve must be A) D<sub>1</sub> . B) D<sub>2</sub>. C) between D<sub>1</sub> and D<sub>2</sub>. D) to the right of D<sub>2</sub>.
-Refer to Figure 26-4.Regard the position of the Supply curve as fixed,as on the graph.If the real interest rate is 8 percent,the inflation rate is 3 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 right of D2.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q35: Suppose government expenditures on goods and services

Q36: If Congress increased the tax rate on

Q37: Other things the same,an increase in the

Q38: If the demand for loanable funds shifts

Q39: The final element of a financial crisis

Q42: We interpret the meaning of "loanable funds"

Q43: Suppose the government ran a budget surplus

Q45: Suppose the U.S.offered a tax credit for

Q143: When tax code changes reduce saving incentives,

Q345: What is a mutual fund?