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Figure 26-4

Question 192

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.If the equilibrium quantity of loanable funds is $56 billion and if the rate of inflation is 4 percent,then the equilibrium real interest rate is A) lower than 6 percent. B) 6 percent. C) between 6 percent and 8 percent. D) higher than 8 percent.
-Refer to Figure 26-4.If the equilibrium quantity of loanable funds is $56 billion and if the rate of inflation is 4 percent,then the equilibrium real interest rate is


A) lower than 6 percent.
B) 6 percent.
C) between 6 percent and 8 percent.
D) higher than 8 percent.

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