Refer to the Following Graph to Answer the Following Questions

question 70

Multiple Choice

Refer to the following graph to answer the following questions:
-Assuming the figure represents the market for loanable funds

• A) line 1 represents savings and point A would be a quantity supplied of loanable funds.
• B) line 1 represents investment demand and point C represents a quantity of loanable funds.
• C) the vertical axis represents investment demand because investment demand is completely inelastic.
• D) the horizontal axis represents the quantity of loanable funds and interest rate B represents a higher-than-equilibrium interest rate.
• E) line 1 represents savings and point C represents a quantity supplied of loanable funds.

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