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QUESTION 17 Use the following diagram to answer this question Real interest rate (percent per year) SLF 10 ........ CO A 2 DLF 1.2 1.6
QUESTION 17 Use the following diagram to answer this question Real interest rate (percent per year) SLF 10 ........ CO A 2 DLF 1.2 1.6 1.8 2.0 2.2 Loanable funds (trillions of 2009 dollars) Which of the following is not correct? O A. The equilibrium real interest rate is 6 percent, and the equilibrium quantity of loanable funds is $1.6 trillion. O B. At an interest rate of 8 percent, there is a surplus of loanable funds. C. At an interest rate of 4 percent, there is a shortage of loanable funds. O D. At an interest rate of 4 percent, the quantity supplied of loanable funds equals $18 trillion
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