In the market for loanable funds, the equilibrium interest rate is determined by the intersection of:
a. the downward-sloping supply curve for loanable funds and the upward-sloping demand curve for loanable funds.
b. the upward-sloping supply curve for loanable funds and the downward-sloping demand curve for loanable funds.
c. the downward-sloping supply curve of loanable funds and the horizontal demand curve for loanable funds.
d. the downward-sloping supply curve of loanable funds and the vertical demand curve for loanable funds.
e. the upward-sloping supply curve for loanable funds and the horizontal demand curve for loanable funds.
b
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a. True b. False Indicate whether the statement is true or false
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If the price elasticity of supply is 1.2, and price increased by 5%, quantity supplied would
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