-Assuming that Figure 7.1 is a market for money that can be borrowed or saved, Box 3 is
A)"$" for the amount borrowed/saved.
B)"$*" for the equilibrium amount borrowed/saved.
C)"r" for interest rate.
D)"r*" for equilibrium interest rate.

Question

-Assuming that Figure 7.1 is a market for money that can be borrowed or saved, Box 3 is 
A)"$" for the amount borrowed/saved. 
B)"$*" for the equilibrium amount borrowed/saved. 
C)"r" for interest rate. 
D)"r*" for equilibrium interest rate.

Quizplus · Accepted Answer

Box 3 represents the equilibrium interest rate, denoted as "r*".

-Assuming That Figure 7