Show The Effect On The Real Interest Rate And Equilibrium Quantity Of Loanable Funds Of A Decrease In The Demand For Loa 1 (38.34 KiB) Viewed 13 times
Show The Effect On The Real Interest Rate And Equilibrium Quantity Of Loanable Funds Of A Decrease In The Demand For Loa 2 (68.29 KiB) Viewed 13 times
Show the effect on the real interest rate and equilibrium quantity of loanable funds of a decrease in the demand for loanable funds and an even larger decrease in the supply of loanable funds. Draw a demand for loanable funds curve. Label it DLF. Draw a supply of loanable funds curve. Label it SLF Draw a point at the equilibrium real interest rate and quantity of loanable funds. Label it 1. Draw a curve that shows a decrease in the demand for loanable funds. Label it DLF₁. Draw a curve that shows an even larger decrease in the supply of loanable funds. Label it SLF₁. Draw a point at the new equilibrium real interest rate and quantity of loanable funds. Label it 2.
12.0 10.0- Real interest rate (percent per year) 8.04 6.0- 4.0 2.0 0.0+ 0.0 1.0 2.0 4.0 3.0 Loanable funds (trillions of 2012 dollars) 5.0
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