Figure 32-1
-Refer to Figure 32-1.If the real interest rate is 6 percent,the quantity of loanable funds demanded is
A)$20 billion,and the quantity supplied is $40 billion.
B)$20 billion,and the quantity supplied is $60 billion.
C)$60 billion,and the quantity supplied is $20 billion.
D)$60 billion,and the quantity supplied is $40 billion.

Question

Figure 32-1 
-Refer to Figure 32-1.If the real interest rate is 6 percent,the quantity of loanable funds demanded is
A)$20 billion,and the quantity supplied is $40 billion. 
B)$20 billion,and the quantity supplied is $60 billion. 
C)$60 billion,and the quantity supplied is $20 billion. 
D)$60 billion,and the quantity supplied is $40 billion.

Quizplus · Accepted Answer

The real interest rate of 6% is shown on the vertical axis. At this interest rate, the quantity of loanable funds demanded is $20 billion (shown by the point where the D curve intersects the 6% interest rate line) and the quantity of loanable funds supplied is $60 billion (shown by the point where the S curve intersects the same 6% interest rate line). Therefore, choice B is correct.

Figure 32-1 -Refer to Figure 32-1.If the Real Interest Rate Is 6