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Figure 26-4

question 354

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Figure 26-4. On the horizontal axis of the graph, L represents the quantity of loanable funds in billions of dollars. 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. Regard the position of the Supply curve as fixed, as on the graph. If the real interest rate is 4 percent, the inflation rate is 2 percent, and the market for loanable funds is in equilibrium, then the position of the demand-for-loanable-funds curve must be A)  D<sub>1</sub>. B)  D<sub>2</sub>. C)  between D<sub>1</sub> and D<sub>2</sub>. D)  to the left of D<sub>1</sub>.
-Refer to Figure 26-4. Regard the position of the Supply curve as fixed, as on the graph. If the real interest rate is 4 percent, the inflation rate is 2 percent, and the market for loanable funds is in equilibrium, then the position of the demand-for-loanable-funds curve must be


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