Refer to Figure 21-6. The loanable funds market is in equilibrium, as shown in the figure above

An increase in the supply of loanable funds could result in which of the following combinations of the real interest rate and quantity of loanable funds at a new equilibrium?
A) The real interest rate is 3 percent, and the quantity of loanable funds is $90 million.
B) The real interest rate is 3 percent, and the quantity of loanable funds is $150 million.
C) The real interest rate is 5 percent, and the quantity of loanable funds is $90 million.
D) The real interest rate is 5 percent, and the quantity of loanable funds is $150 million.


B

Economics

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