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3. Equilibrium in the market for loariable funds The following tables present a hypothetical economy's data on the relationship between various real interest rates

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3. Equilibrium in the market for loariable funds The following tables present a hypothetical economy's data on the relationship between various real interest rates and sector-specific supply and demand for loanable funds, where the currency is the U.S. dollar. Real Interest Rate (Percent) Household Supply (Billions of Business Supply (Billions of Federal Government Supply (Billions of dollars) Foreign Investor Supply (Billions of Municipal Government Supply (Billions of dollars) dollars) dollars) dollars) 7 55 55 5 60 30 6 45 45 5 45 25 5 40 25 5 25 15 4 35 25 5 25 15 3 30 15 5 15 10 2 25 10 5 10 5 Real Interest Rate (Percent) Household Demand (Billions of Business Demand Federal Government Demand (Billions of (Billions of dollars) dollars) dollars) Demand (Billions of dollars) Foreign Investor Government Demand (Billions of dollars) Municipal 7 20 10 5 10 5 25 20 5 20 10 5 40 25 5 25 15 4 50 40 5 40 20 20 S

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