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The table below shows the demand and supply for borrowing money with credit cards: Demand and supply schedule for financial capital Interest Rate Q of
The table below shows the demand and supply for borrowing money with credit cards: Demand and supply schedule for financial capital Interest Rate Q of financial capital (in Qs of financial capital (in (%) billions) billions) 11 $800 $420 13 $700 $510 15 $600 $600 17 $550 $660 19 $500 $720 21 $480 $750 Given the data shown in the table above, answer the following: 1. What is the equilibrium interest rate and equilibrium quantity in this market? Justify your answer! 2. If interest rate is set at 19%, do we have a shortage or a surplus of financial capital? Justify your answer! How much is the shortage or surplus amount? 3. If interest rate is set at 13%, do we have a shortage or a surplus of financial capital? Justify your answer! How much is the shortage or surplus amount
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