Stocks represent partial ownership of a firm

The table above shows the supply of loanable funds and the demand for loanable funds schedules

a. What is the equilibrium real interest rate and the equilibrium quantity of loanable funds? b. If the real interest rate is 4 percent, is there a shortage or surplus? What will happen in the market?

In the IS-LM model, an increase in government spending in the goods market has an impact on the money market because

a. it increases the money supply. b. it increases income, which increases money demand. c. it decreases income, which decreases money demand. d. it increases interest rates, which decreases money demand. e. none of the above.