Figure 66 Alt Text for Figure 6

question 98

Multiple Choice

Figure 6.6 Alt text for Figure 6.6: In figure 6.6, a graph shows loanable funds market in equilibrium.
Long description for Figure 6.6: The x-axis is labelled, quantity of loanable funds (millions of dollars) , ranging from 0 to 180 in increments of 30.The y-axis is labelled real interest rate, ranging from 0 to 6% in increments of 1.2 intersecting lines are shown.A line labelled D begins at the top left corner and slopes down toward the end of the x-axis.Another line labelled S begins near the origin and slopes upward to the top right corner.5 points are plotted on these two lines as (90, 5) , (90, 3) , (120, 4) , (150, 5) , (150, 3) .These points are connected to their respective coordinates on the x-axis and y-axis using dotted lines.
-Refer to Figure 6.6.The loanable funds market is given in the figure above.If the current real interest rate is 5 percent, which of the following is true?

• A)The loanable funds market is in equilibrium.
• B)There is a surplus of loanable funds in the market.
• C)There is a shortage of loanable funds in the market.
• D)The quantity of loanable funds being demanded in the market is less than $90 million.
• E)The quantity of loanable funds is undetermined.

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Definitions:

Manila Bay

A natural harbor in the Philippines serving as a significant site for naval battles, notably the Battle of Manila Bay during the Spanish-American War in 1898.

Stimulus Energies

The physical energy, such as light or sound waves, that activate sensory systems and lead to perception.

Neural Activity

refers to the electrical and chemical processes occurring within neurons, supporting brain functions like thought, emotion, and movement.

Sensory Input

The information that the brain receives from the senses, including sight, sound, smell, taste, and touch, which it then processes to understand and interact with the environment.