The Schedule Shows Various Interest Rates, the Associated Quantity Demanded

question 86

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. If changes in tax laws made households save more by $140 billion at each interest rate, then the new equilibrium interest rate would be

• A)2 percent.
• B)4 percent.
• C)8 percent.
• D)10 percent.

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