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Refer to the following graph to answer the next five questions: Vertical Axis Horizontal Axis Assuming the figure represents

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line 1 represents savings (supply) and line 2 represents investment (demand) . In the graph of market for loanable funds we measure interest rate along the vertical axis and quantity of loanable funds along the horizontal axis . At interest rate A , distance between points C and D shows the shortage of loanable funds. B is the equilibrium interest rate and we find equilibrium quantity of loanable funds from this point .

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