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.

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