If interest rate is 2 how much will firms want to invest

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Reference no: EM13454261

Use the data below to answer the following questions:

Interest Rate	Supply of Loanable Funds(Millions $)	Investment Demanded (Millions $)
1%	$3	$12
2%	$5	$9
3%	$7	$7
4%	$8	$6
5%	$9	$4

a. If the interest rate is 2%, how much will households wish to save?

b. If the interest rate is 2%, how much will firms wish to invest?

c. Will banks wish to raise or lower interest rates?

d. What will the equilibrium interest rate and quantity of loans be?

Reference no: EM13454261

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