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Use the graph to answer the question that follows. The graph shows a horizontal axis labeled Quantity of loanable funds in dollars and a vertical
Use the graph to answer the question that follows. The graph shows a horizontal axis labeled Quantity of loanable funds in dollars and a vertical axis labeled real interest rate percent. There is a line segment labeled D l f that falls from left to right. Two parallel lines labeled S prime l f and S prime prime l f rise from left to right and intersect the line D l f at the points o prime and o prime prime respectively. Two vertical lines labeled 1600 dollars and 1800 dollars are drawn from the points on the horizontal line up to the points o prime and o prime prime respectively. Two horizontal lines labeled 8 percent and 7 percent are drawn perpendicular to the vertical axis out to the points o prime and o prime prime respectively. If the economy of a country experiences increased capital inflows from abroad due to some favorable economic conditions, then other things being constant, what is the new real interest rate, equilibrium quantity of loanable funds, and equilibrium point in the loanable funds market? (1 point) The new interest rate is 7%, the new equilibrium quantity is $1,600, and the new point of
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