Refer to Figure 10-6.The loanable funds market is given in the ...

[Melani1276]

Question 1

Figure 10-6









Refer to Figure 10-6. The loanable funds market is in equilibrium, as shown in the figure above. As a result of an increase in the government budget deficit, the ________ for loanable funds will ________, thereby ________ the equilibrium real interest rate and ________ the equilibrium quantity of loanable funds.

◦ demand; rise; increasing; decreasing
◦ supply; rise; decreasing; increasing
◦ demand; fall; decreasing; decreasing
◦ supply; fall; increasing; decreasing

Question 2

Figure 10-6









Refer to Figure 10-6. The loanable funds market is given in the figure above. If the current real interest rate is 5 percent, which of the following is true?

◦ The loanable funds market is in equilibrium.
◦ There is a surplus of loanable funds in the market.
◦ There is a shortage of loanable funds in the market.
◦ The quantity of loanable funds being demanded in the market is less than $90 million.

[amynguyen1221]

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[Joe Bag]

thank you