Question

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

Answer 1

7% and 135

Step-by-step 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