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

[Zoey63294]

Question 1

Figure 10-5











Refer to Figure 10-5.  "Crowding out" of firm investment as a result of a budget deficit is illustrated by the movement from ________ in the graph above.

◦ A to B
◦ B to A
◦ B to C
◦ C to A

Question 2

Figure 10-6









Refer to Figure 10-6. The loanable funds market is in equilibrium, as shown in the figure above. An increase in the supply of loanable funds could result in which of the following combinations of the real interest rate and quantity of loanable funds at a new equilibrium?

◦ The real interest rate is 5 percent, and the quantity of loanable funds is $150 million.
◦ The real interest rate is 5 percent, and the quantity of loanable funds is $90 million.
◦ The real interest rate is 3 percent, and the quantity of loanable funds is $150 million.
◦ The real interest rate is 3 percent, and the quantity of loanable funds is $90 million.

[kbennett34]

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