Please answer all the questions below and give a detailed solution. Please double-check before submitting the answer.Fill In The Blank Options Left to Right Top to Bottom:Saving or Investmentdecreases or increasesgreater or lesssurplus or shortageraise or lowerincreasing or decreasingincreasing or decreasing is the source of the supply of loanable funds. As the interest rate falls, the quantity of loanable funds suppliedSuppose the interest rate is 3.5%. Based on the previous graph, the quantity of loanable funds supplied isthan the quantity of loansdemanded, resulting in a▼ of loanable funds. This would encourage lenders to▼ the interest rates they charge, therebyv the quantity of loanable funds supplied andthe quantity of loanable funds demanded, moving the market towardthe equilibrium interest rate of 4. Supply and demand for loanable fundsThe following graph shows the market for loanable funds in a closed economy. The upward-sloping orange line represents the supply of loanablefunds, and the downward-sloping blue line represents the demand for loanable funds.Supply5Demand100200300400500600LOANABLE FUNDS (Billions of dollars)INTEREST RATE (Percent)

Loanable fund theory: - Loanable fund theory is the theory that determines the interest rate,…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please answer all the questions below and give a detailed solution. Please double-check before submitting the answer.
Fill In The Blank Options Left to Right Top to Bottom:
Saving or Investment
decreases or increases
greater or less
surplus or shortage
raise or lower
increasing or decreasing
increasing or decreasing

is the source of the supply of loanable funds. As the interest rate falls, the quantity of loanable funds supplied
Suppose the interest rate is 3.5%. Based on the previous graph, the quantity of loanable funds supplied is
than the quantity of loans
demanded, resulting in a
▼ of loanable funds. This would encourage lenders to
▼ the interest rates they charge, thereby
v the quantity of loanable funds supplied and
the quantity of loanable funds demanded, moving the market toward
the equilibrium interest rate of

4. Supply and demand for loanable funds
The following graph shows the market for loanable funds in a closed economy. The upward-sloping orange line represents the supply of loanable
funds, and the downward-sloping blue line represents the demand for loanable funds.
Supply
5
Demand
100
200
300
400
500
600
LOANABLE FUNDS (Billions of dollars)
INTEREST RATE (Percent)

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