Refer to the figure below to answer the following questions.
Figure 7.2.3
-In Figure 7.2.3, when the real interest rate is 6 percent, the quantity of loanable funds demanded is
A)$300 billion.
B)$450 billion.
C)$150 billion.
D)any amount less than $450 billion.
E)$600 billion.

Question

Refer to the figure below to answer the following questions.
  Figure 7.2.3
-In Figure 7.2.3, when the real interest rate is 6 percent, the quantity of loanable funds demanded is
A)$300 billion. 
B)$450 billion. 
C)$150 billion. 
D)any amount less than $450 billion. 
E)$600 billion.

Quizplus · Accepted Answer

At a real interest rate of 6 percent, the quantity of loanable funds demanded is $450 billion. This is where the demand curve intersects with the supply curve in the graph. Any amount less than this would result in excess supply, while any amount greater than this would result in excess demand.

Refer to the Figure Below to Answer the Following Questions