What will be the equilibrium interest rate


Suppose that the demand for car loans in the Milwaukee area is $10 million per month at an interest rate of 10 percent per year, $11 million at an interest rate of 9 percent per year, $12 million at an interest rate of 8 percent per year, and so on. If the supply of loanable funds is fixed at $16 million, what will be the equilibrium interest rate?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: What will be the equilibrium interest rate
Reference No:- TGS057699

Expected delivery within 24 Hours