Question One: (24 marks) (B3, D2, D1) The table below shows Demand and Supply for loanable fund at given time period Rea

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Question One 24 Marks B3 D2 D1 The Table Below Shows Demand And Supply For Loanable Fund At Given Time Period Rea 1 (42.23 KiB) Viewed 34 times

Question One: (24 marks) (B3, D2, D1) The table below shows Demand and Supply for loanable fund at given time period Real interest rate 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 Quantity of loanable fund demanded (billion $) 1000 950 900 850 800 750 700 650 600 550 500 450 400 350 300 Quantity of loanable fund supplied (billion $) 400 450 500 550 600 650 700 750 800 850 900 950 1000 1050 1100 Instructions: Using excel, find the equilibrium real interest rate and quantity of loanable fund, show the equilibrium on a graph. (4 marks) If this country experiences a recession business cycle phase that decreases the demand for loanable fund by $200 billion. Find the new equilibrium real interest rate and quantity of loanable fund. (2 marks) Show the shift on the graph. (2 marks)