Refer to Figure 21-6. The loanable funds market is in ...

[asan beg]

Refer to Figure 21-6. 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?
  A) The real interest rate is 3 percent, and the quantity of loanable funds is 90 million.
  B) The real interest rate is 3 percent, and the quantity of loanable funds is 150 million.
  C) The real interest rate is 5 percent, and the quantity of loanable funds is 90 million.
  D) The real interest rate is 5 percent, and the quantity of loanable funds is 150 million.

Question 2

Innovations, including new products and services, in financial markets and institutions have made the job of defining the money supply easier.
 
  Indicate whether the statement is true or false

[Pamela.irrgang@yahoo.com]

Answer to Question 1

B

Answer to Question 2

FALSE

[asan beg]

Excellent

[LVPMS]

YES! Correct, THANKS for helping me on my review