lease use the graph to answer the questions. Given the market conditions, what will the prevailing interest rate be? O 6% O 18% O2% O 10% Given the market conditions, how much money is borrowed in the loanable funds market?
lease use the graph to answer the questions. Given the market conditions, what will the prevailing interest rate be? O 6% O 18% O2% O 10% Given the market conditions, how much money is borrowed in the loanable funds market?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Please use the graph to answer the questions.
Given the market conditions, what will the prevailing
interest rate be?
O 6%
18%
O 2%
10%
Given the market conditions, how much money is
borrowed in the loanable funds market?
O $10 billion.
$50 billion
O$90 billion
O $70 billion
$30 billion.
Interest rate (%)
18-
16-
14-
12.
10.
8-
6-
+
et
0
Demand
Supply
60 70 80 90
10 20 30 40 50
Quantity of loanable funds (in billions of dollars)
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