Figure 26-4

question 192

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 4 percent,then the equilibrium real interest rate is

• A)lower than 6 percent.
• B)6 percent.
• C)between 6 percent and 8 percent.
• D)higher than 8 percent.

---

Definitions:

Autonomic Fibres

Nerve fibers that are part of the autonomic nervous system, controlling involuntary bodily functions such as heart rate and digestion.

Sympathetic Fibres

Nerve fibers of the sympathetic nervous system that are involved in the body's fight or flight response, affecting functions such as heart rate and blood pressure.

Afferent Nervous System

Part of the peripheral nervous system that carries sensory information from the sensory organs to the brain.

Efferent Nervous System

Part of the nervous system responsible for carrying signals away from the central nervous system towards muscles to cause movement.