The market for loanable funds is described in the following demand and supply schedule. Suppliers of loanable
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Suppliers of loanable funds would prefer 14 per cent to any other interest rate in the table. But 14 percent is not what they will receive. Why not? Explain fully.
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INTEREST RATE%) 14 12 10 DEMANDED $1,000 2000 3,000 4,000 ,000 SUPPLIED 5,000 4,000 3,000 2,000 1,000
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