I wanna see if I did this correctly. Can you please check my homework. Thanks. Investment is the source of the supply of loanable funds. As the interest rate falls, the quantity of loanable funds supplied increases. Suppose the interest rate 2.5%. Based on the previous graph, the quantity of loanable funds supplied is less than the quantity of loans demanded, resulting in a shortage of loanable funds. This would encourage lenders to raise the interest rates they changed, thereby increasing the quantity of loanable funds supplied and decreasing the quantity of loanable funds demanded, moving the market toward the equilibrium interest rate of 3%.

Homework (Ch 13) 6 5 Supply INTEREST RATE (Percent) 3 2 Demand 1 100 200 300 400 500 600 LOANABLE FUNDS (Billions of dollars)