Figure 26-4.On the horizontal axis of the graph,L represents the quantity of loanable funds in billions of dollars.
-Refer to Figure 26-4.If the equilibrium quantity of loanable funds is $56 billion and if the rate of inflation is 4 percent,then the equilibrium real interest rate is
A)lower than 6 percent.
B)6 percent.
C)between 6 percent and 8 percent.
D)higher than 8 percent.

Question

Figure 26-4.On the horizontal axis of the graph,L represents the quantity of loanable funds in billions of dollars. 
-Refer to Figure 26-4.If the equilibrium quantity of loanable funds is $56 billion and if the rate of inflation is 4 percent,then the equilibrium real interest rate is
A)lower than 6 percent. 
B)6 percent. 
C)between 6 percent and 8 percent. 
D)higher than 8 percent.

Quizplus · Accepted Answer

The Answer of Figure 26-4.On the horizontal axis of the graph,L represents the quantity of loanable funds in billions of dollars. 
-Refer to Figure 26-4.If the equilibrium quantity of loanable funds is $56 billion and if the rate of inflation is 4 percent,then the equilibrium real interest rate is
A)lower than 6 percent. 
B)6 percent. 
C)between 6 percent and 8 percent. 
D)higher than 8 percent.