Use the Following to Answer Question

question 7

Multiple Choice

Use the following to answer question:
-(Table: Loanable Funds) Look at the table Loanable Funds. At what interest rate will the market for loanable funds be in equilibrium?

• A)7%
• B)6%
• C)5%
• D)4%

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Definitions:

Product Rises

This term seems unclear or incomplete. If referring to a situation where the price or demand for a product increases, there is no single term that universally describes this scenario as "Product Rises." NO.

Income Effect

The change in consumption resulting from a change in real income, which can itself result from changes in wages or prices.

Money Income

The total amount of monetary earnings or receipts a person or household receives from various sources including wages, dividends, and benefits.

Product Increases

Situations in which the output or availability of goods and services in the market expands.