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Figure 27-4 This figure shows the loanable funds market for a closed economy. Several supply curves and demand curves are plotted on a rectangular coordinate
Figure 27-4 This figure shows the loanable funds market for a closed economy. Several supply curves and demand curves are plotted on a rectangular coordinate system. The horizontal axis is for loanable funds, measured in dollars, with values of 80, 120, and 160 shown. THe vertical axis is for the interest rate, measured in percent, with values of 4, 6, and 7 shown. A demand curve labeled as D1 is a downward sloping line through the points E (80, 7), A (120, 6), and D(160, 4). A demand curve labeled as D2 is a downward sloping straight line through estimated points (40, 6), B (80, 4), and (120, 2). A demand curve labeled as D3 is a downward sloping straight line through estimated points (120, 9), C (160, 7) and (200, 6). A supply curve labeled as S1 is an upward sloping straight line through the points B (80, 4), A (120, 6), and C (160, 7). A supply curve labeled as S3 is an upward sloping straight line through the estimated points (40, 6), E (80, 7), and (120, 9). A supply curve labeled as S2 is a straight line through estimated points (120, 2), D (160, 4), and
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