INTEREST RATE (Percent) 1 0 9 Supply Demand 100 200 300 400 500 600 700 800 900 1000 LOANABLE FUNDS (Billions of dollars) Investment increases is the source of the demand for loanable funds. As the Interest rate falls, the quantity of loanable funds demanded Suppose the interest rate is 4.5%. Based on the previous graph, the quantity of loanable funds supplied is demanded, resulting in a of loanable funds. This would encourage lenders to the quantity of loanable funds supplied and the equilibrium interest rate of than the quantity of loans the Interest rates they charge, thereby the quantity of loanable funds demanded, moving the market toward

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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INTEREST RATE (Percent)
1
0
9
Supply
Demand
100 200 300 400 500 600 700 800 900 1000
LOANABLE FUNDS (Billions of dollars)
Investment
increases
is the source of the demand for loanable funds. As the Interest rate falls, the quantity of loanable funds demanded
Suppose the interest rate is 4.5%. Based on the previous graph, the quantity of loanable funds supplied is
demanded, resulting in a
of loanable funds. This would encourage lenders to
the quantity of loanable funds supplied and
the equilibrium interest rate of
than the quantity of loans
the Interest rates they charge, thereby
the quantity of loanable funds demanded, moving the market toward
Transcribed Image Text:INTEREST RATE (Percent) 1 0 9 Supply Demand 100 200 300 400 500 600 700 800 900 1000 LOANABLE FUNDS (Billions of dollars) Investment increases is the source of the demand for loanable funds. As the Interest rate falls, the quantity of loanable funds demanded Suppose the interest rate is 4.5%. Based on the previous graph, the quantity of loanable funds supplied is demanded, resulting in a of loanable funds. This would encourage lenders to the quantity of loanable funds supplied and the equilibrium interest rate of than the quantity of loans the Interest rates they charge, thereby the quantity of loanable funds demanded, moving the market toward
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