Question

The figure above shows the loanable funds market. At an interest rate of
A) 8 percent, there is a surplus of loanable funds.
B) 8 percent, the quantity demanded of loanable funds exceeds the quantity supplied.
C) 4 percent, the quantity supplied of loanable funds equals $18 trillion.
D) 6 percent, the quantity demanded of loanable funds equals $14 trillion.
E) 4 percent, there is a surplus of loanable funds.

Answer

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