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In the graph for the supply and demand curves for the loanable funds theory, which quadrant...

In the graph for the supply and demand curves for the loanable funds theory, which quadrant would you find savers when the interest rate is low?

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Answer #1

Answer- top right

  • Loanable fund theory the graph of demand and supply curve moves upward right.
  • Here the rate of interest is determined by desired saving and investment curves. So that for interest savers the rate of interest is low for a specific period of time.
  • At lower interest rates borrower wants to borrow more amount.

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