me following graph shows the market for loanable funds in a closed economy. The upward-sloping orange line represents the supply o anable funds, and the downward-sloping blue line represents the demand for loanable funds.

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Chapter1: Making Economics Decisions
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drop down options : 1: investing, saving 2: decreases, increases 3. Greater, less 4. Surplus, shortage 5. Raise, lower 6. Increasing, decreasing 7. Increasing, decreasing

 

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he following graph shows the market for loanable funds in a closed economy. The upward-sloping orange line represents the supply o
banable funds, and the downward-sloping blue line represents the demand for loanable funds.
INTEREST RATE (Percent)
10
9
8
7
1
0
0
Supply
Demand
100 200 300 400 500 600 700 800 900 1000
LOANABLE FUNDS (Billions of dollars)
is the source of the supply of loanable funds. As the interest rate falls, the quantity of loanable funds supplied
Suppose the interest rate is 4.5%. Based on the previous graph, the quantity of loanable funds supplied is
loans demanded, resulting in a
thereby
of loanable funds. This would encourage lenders to
the quantity of loanable funds supplied and
market toward the equilibrium interest rate of
than the quantity of
the interest rates they charge,
the quantity of loanable funds demanded, moving the
Transcribed Image Text:he following graph shows the market for loanable funds in a closed economy. The upward-sloping orange line represents the supply o banable funds, and the downward-sloping blue line represents the demand for loanable funds. INTEREST RATE (Percent) 10 9 8 7 1 0 0 Supply Demand 100 200 300 400 500 600 700 800 900 1000 LOANABLE FUNDS (Billions of dollars) is the source of the supply of loanable funds. As the interest rate falls, the quantity of loanable funds supplied Suppose the interest rate is 4.5%. Based on the previous graph, the quantity of loanable funds supplied is loans demanded, resulting in a thereby of loanable funds. This would encourage lenders to the quantity of loanable funds supplied and market toward the equilibrium interest rate of than the quantity of the interest rates they charge, the quantity of loanable funds demanded, moving the
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