Macroeconomics

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Moderate

Loanable Funds Market-Determining Quantity Demanded and Supplied

MACRO-MV1QJ7

Refer to the figure below:

Suppose the real interest rate is $5\%$. Which of the following statements is true?

A

The quantity supplied of loanable funds exceeds the quantity demanded by $35{,}000$.

B

The quantity demanded of loanable funds exceeds the quantity supplied by $30{,}000$.

C

The quantity demanded of loanable funds exceeds the quantity supplied by $50{,}000$.

D

The quantity supplied of loanable funds exceeds the quantity demanded by $30{,}000$.