Refer to the Following Graph to Answer the Following Questions

question 32

Multiple Choice

Refer to the following graph to answer the following questions:
-Assuming the figure represents the market for loanable funds,and that point C represents $40 million and point D represents $70 million,then it would be true that

• A) at interest rate A,the market is in equilibrium.
• B) at interest rate A,there is a surplus of $30 million of loanable funds.
• C) at interest rate A,there is a shortage of $30 million of loanable funds.
• D) because there is a disequilibrium at interest rate A,interest rates must fall.
• E) the interest rate represented by A must be greater than that represented by B.

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