The Schedule Shows Various Interest Rates, the Associated Quantity Demanded

question 239

Multiple Choice

The schedule shows various interest rates, the associated quantity demanded of loanable funds, and the quantity supplied of loanable funds in billions of dollars at those interest rates. At an interest rate of 4 percent, there will be

• A)an excess supply of loanable funds of 140 billion.
• B)an excess supply of loanable funds of 360 billion.
• C)an excess demand for loanable funds of 140 billion.
• D)an excess demand for loanable funds of 500 billion.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.