Biology Forums - Study Force

The following table lists some economic agents and their intentions. At present the interest rate is 5 percent.

Who	Intent	Amount Needed
Mike	Save for child's college	$50,000
Sophie	Buy a car	$10,000
Pie's Pizza	Expand restaurant	$100,000
Sara	Save for retirement	$100,000

Refer to the table above. What further information would help construct the supply curve in the credit market in this case?

▸ As the interest rate decreases to 3 percent, Pie's Pizza and Sophie decide to take out loans of $110,000 and $12,000, respectively.

▸ The interest rate will increase to 6 percent.

▸ As the interest rate increases to 6 percent, Pie's Pizza and Sophie decide to take out loans of $110,000 and $12,000 respectively.

▸ As the interest rate increases to 6 percent, Mike and Sara decide to save $55,000 and $130,000, respectively.

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