PLEASE ANSWER ALL QUESTIONS NOT JUST SOMEPLEASE WRITE THE EXACT NUMBERS FOR THE GRAPH.PLEASE READ CAREFULLY, THIS MAY BE A SIMILAR QUESTION, BUT ALL QUESTIONS ARE DIFFERENT 3. 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 ofloanable funds, and the downward-sloping blue line represents the demand for loanable funds.7SupplyDemand100200300400500600700800LOANABLE FUNDS (Billions of dollars)InvestmentSavingis the source of the supply of loanable funds. As the interest rate falls, the quantity of loanable fundssupplieddecreasesgreaterincreaseslessSuppose the interest rate is 3.5%. Based on the previous graph, the quantity of loanable funds supplied isthan the quantity of raiseloans demanded, resulting in aof loanable funds. This would encourage lenders tothe interest rates they charge,the quantity of loanable funds supplied andtherebymarket toward the equilibrium interest rate ofthe quantity of loanable funds demanded, moving the HowerincreasingdecreasingincréasingsurplusdecreasingshortageINTEREST RATE (Percent)

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

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.

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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

PLEASE ANSWER ALL QUESTIONS NOT JUST SOME

PLEASE WRITE THE EXACT NUMBERS FOR THE GRAPH.

PLEASE READ CAREFULLY, THIS MAY BE A SIMILAR QUESTION, BUT ALL QUESTIONS ARE DIFFERENT

3. 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.
7
Supply
Demand
100
200
300
400
500
600
700
800
LOANABLE FUNDS (Billions of dollars)
Investment
Saving
is the source of the supply of loanable funds. As the interest rate falls, the quantity of loanable funds
supplied
decreases
greater
increases
less
Suppose the interest rate is 3.5%. Based on the previous graph, the quantity of loanable funds supplied is
than the quantity of raise
loans demanded, resulting in a
of loanable funds. This would encourage lenders to
the interest rates they charge,
the quantity of loanable funds supplied and
thereby
market toward the equilibrium interest rate of
the quantity of loanable funds demanded, moving the Hower
increasing
decreasing
incréasing
surplus
decreasing
shortage
INTEREST RATE (Percent)

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