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Home X D2L Grades - ECO-202-T4488 Mac X MindTap - Cengage Learning X Course Hero X + C ng.cengage.com/staticb/ui/evo/index.html? deploymentld=5981412353502464190243042516&elSBN=9780357133576&id=1736030795&snapshotld=3372210& Makenzie v KK CENGAGE |
Home X D2L Grades - ECO-202-T4488 Mac X MindTap - Cengage Learning X Course Hero X + C ng.cengage.com/staticb/ui/evo/index.html? deploymentld=5981412353502464190243042516&elSBN=9780357133576&id=1736030795&snapshotld=3372210& Makenzie v KK CENGAGE | MINDTAP Q Search this course ? My Home Module Six Quiz X 3. Supply and demand for loanable funds Courses The following graph shows the market for loanable funds in a closed economy. The upward-sloping orange line represents the supply of loanable Catalog and Study Tools funds, and the downward-sloping blue line represents the demand for loanable funds. A-Z Rental Options College Success Tips Career Success Tips ? Help 10 Give Feedback Supply 00 bongo INTEREST RATE (Percent) W A Demand A+ N 0 200 300 400 500 600 700 800 900 1000 LOANABLE FUNDS (Billions of dollars) O is the source of the demand for loanable funds. As the interest rate falls, the quantity of loanable funds demandedHome X D2L Grades - ECO-202-T4488 Mac X MindTap - Cengage Learning X Course Hero X + C ng.cengage.com/staticb/ui/evo/index.html? deploymentld=5981412353502464190243042516&elSBN=9780357133576&id=1736030795&snapshotld=3372210& Makenzie v KK CENGAGE | MINDTAP Q Search this course ? My Home Module Six Quiz X Courses Supply Catalog and Study Tools A-Z Rental Options INTEREST RATE (Percent) College Success Tips w Career Success Tips Demand N ? Help Give Feedback 0 100 200 300 400 500 600 700 800 900 1000 LOANABLE FUNDS (Billions of dollars) bongo is the source of the demand for loanable funds. As the interest rate falls, the quantity of loanable funds demanded A+ Suppose the interest rate is 4.5%. Based on the previous graph, the quantity of loanable funds supplied is_ than the quantity of loans demanded, resulting in a of loanable funds. This would encourage lenders to the interest rates they charge, thereby the quantity of loanable funds supplied and the quantity of loanable funds demanded, moving the market toward the equilibrium interest rate of % Grade It Now Save & Continue Continue without saving
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