Refer to the figure below to answer the following questions.

Figure 23.2.3
-Refer to Figure 23.2.3. In Figure 23.2.3, if the real interest rate is 6 percent, the quantity of loanable funds demanded is
A)$150 billion.
B)$300 billion.
C)$450 billion.
D)$600 billion.
E)any amount less than $450 billion.

Question

Refer to the figure below to answer the following questions.
  
Figure 23.2.3
-Refer to Figure 23.2.3. In Figure 23.2.3, if the real interest rate is 6 percent, the quantity of loanable funds demanded is
A)$150 billion. 
B)$300 billion. 
C)$450 billion. 
D)$600 billion. 
E)any amount less than $450 billion.

Quizplus · Accepted Answer

At 6 percent real interest rate, the quantity of loanable funds demanded is $450 billion, which is the intersection point of the demand curve and the supply curve. Any quantity below $450 billion would result in excess supply of loanable funds, and any quantity above $450 billion would result in excess demand for loanable funds. Thus, the correct answer is (C) $450 billion.

Refer to the Figure Below to Answer the Following Questions