shows the amount of savings and borrowing in a market for loans to purchase homes, measured in millions of dollars, at various interest rates. What is the equilibrium interest rate and quantity in the capital financial market

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21-07-2020
Business

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shows the amount of savings and borrowing in a market for loans to purchase homes, measured in millions of dollars, at various interest rates. What is the equilibrium interest rate and quantity in the capital financial market

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andromache andromache · Answer 1 · 2020-07-26T05:23:59+02:00

andromache andromache

26-07-2020

Answer:

7% and 135

Explanation:

The computation of the equilibrium interest rate and the quantity is shown below:

As we can see in the attached figure that at the interest rate of 7% the Qd is equivalent to Qs i.e 140

And when it the interest rate is 8% the quantity of lending is 145 and the quantity of borrowing is 135 that decreased the quantity of lending by 140 to 135 so we considered the 135

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