Interest rate 6% 5% 4% Principles of Macroeconomics Final Exam Spring 2024 Line 1 Line 2 $200 $250 $300 Savings and investment (billions of dollars) 9. In the above loanable funds market, Line 1 represents , and 5% represents. ,Line 2 represents a. savings; the supply of loanable funds; a surplus of loanable funds b. savings; the demand for loanable funds; the equilibrium interest rate c. investment; the supply of loanable funds; a shortage of loanable funds d. investment; the demand for loanable funds; the equilibrium interest rate e. foreign savings; the supply of loanable funds; a surplus of loanable funds 10. In the graph, at an interest rate of 4%, the a. quantity demanded of loanable funds equals the quantity supplied of loanable funds, and equilibrium is reached. b. quantity demanded of loanable funds is greater than the quantity supplied of loanable funds, and there is a surplus of loanable funds. c. demand for loanable funds is greater than the supply of loanable funds, and there is a shortage of loanable funds. d. quantity demanded of loanable funds is greater than the quantity supplied of loanable funds, and there is a shortage of loanable funds. e. quantity demanded of loanable funds is less than the quantity supplied of loanable funds, and there is a shortage of loanable funds.
Interest rate 6% 5% 4% Principles of Macroeconomics Final Exam Spring 2024 Line 1 Line 2 $200 $250 $300 Savings and investment (billions of dollars) 9. In the above loanable funds market, Line 1 represents , and 5% represents. ,Line 2 represents a. savings; the supply of loanable funds; a surplus of loanable funds b. savings; the demand for loanable funds; the equilibrium interest rate c. investment; the supply of loanable funds; a shortage of loanable funds d. investment; the demand for loanable funds; the equilibrium interest rate e. foreign savings; the supply of loanable funds; a surplus of loanable funds 10. In the graph, at an interest rate of 4%, the a. quantity demanded of loanable funds equals the quantity supplied of loanable funds, and equilibrium is reached. b. quantity demanded of loanable funds is greater than the quantity supplied of loanable funds, and there is a surplus of loanable funds. c. demand for loanable funds is greater than the supply of loanable funds, and there is a shortage of loanable funds. d. quantity demanded of loanable funds is greater than the quantity supplied of loanable funds, and there is a shortage of loanable funds. e. quantity demanded of loanable funds is less than the quantity supplied of loanable funds, and there is a shortage of loanable funds.
Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance
Section: Chapter Questions
Problem 2.5P
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Transcribed Image Text:Interest
rate
6%
5%
4%
Principles of Macroeconomics Final Exam Spring 2024
Line 1
Line 2
$200
$250
$300
Savings and investment
(billions of dollars)
9. In the above loanable funds market, Line 1 represents
, and 5% represents.
,Line 2 represents
a. savings; the supply of loanable funds; a surplus of loanable funds
b. savings; the demand for loanable funds; the equilibrium interest rate
c. investment; the supply of loanable funds; a shortage of loanable funds
d. investment; the demand for loanable funds; the equilibrium interest rate
e. foreign savings; the supply of loanable funds; a surplus of loanable funds
10. In the graph, at an interest rate of 4%, the
a. quantity demanded of loanable funds equals the quantity supplied of loanable funds,
and equilibrium is reached.
b. quantity demanded of loanable funds is greater than the quantity supplied of
loanable funds, and there is a surplus of loanable funds.
c. demand for loanable funds is greater than the supply of loanable funds, and there is
a shortage of loanable funds.
d. quantity demanded of loanable funds is greater than the quantity supplied of
loanable funds, and there is a shortage of loanable funds.
e. quantity demanded of loanable funds is less than the quantity supplied of loanable
funds, and there is a shortage of loanable funds.
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