Figure 26-4

question 51

Multiple Choice

Figure 26-4.On the horizontal axis of the graph,L represents the quantity of loanable funds in billions of dollars.
-Refer to Figure 26-4.If the equilibrium quantity of loanable funds is $56 billion and if the rate of inflation is 5 percent,then the equilibrium nominal interest rate is

• A)11 percent.
• B)approximately 6 percent.
• C)between 6 percent and 8 percent.
• D)between 11 percent and 13 percent.