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Author Question: Refer to Figure 10-6.The loanable funds market is given in the figure above. If the ... (Read 446 times)

Melani1276

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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.


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Marked as best answer by Melani1276 on Mar 16, 2019

amynguyen1221

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