The table below shows the amount of savings and borrowing in a market for loans to purchase homes, measured in millions of dollars, at various interest rates. InterestRate QuantitySupplied QuantityDemanded5% 98 2216% 129 1917% 160 1608% 178 1429% 196 12410% 214 106 What is the equilibrium interest rate and quantity of loaned funds? r = % Q = Suppose there is a decrease in demand of money, what will happen to interest rates and quantity? Increase in Interest Rates, Increase in Quantity?Increase in Interest Rates, Decrease in Quantity?Decrease in Interest Rates, Increase in Quantity?Decrease in Interest Rates, Decrease in Quantity?
The table below shows the amount of savings and borrowing in a market for loans to purchase homes, measured in millions of dollars, at various interest rates.
InterestRate QuantitySupplied QuantityDemanded
5% 98 221
6% 129 191
7% 160 160
8% 178 142
9% 196 124
10% 214 106
What is the equilibrium interest rate and quantity of loaned funds?
r = %
Q =
Suppose there is a decrease in
Increase in Interest Rates, Increase in Quantity?
Increase in Interest Rates, Decrease in Quantity?
Decrease in Interest Rates, Increase in Quantity?
Decrease in Interest Rates, Decrease in Quantity?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
