Question

Three students have each saved $1,000. Each has an investment opportunity in which he or she can invest up to $2,000. Here are the rates of return on the students’ investment projects:
Student Return (Percent)
Harry 5
Ron 8
Hermione 20
Assume borrowing and lending is prohibited, so each student uses only personal saving to finance his or her own investment project.

Now suppose their school opens up a market for loanable funds in which students can borrow and lend among themselves at an interest rate r . A student would choose to be a lender in this market if his or her expected rate of return isless than r . Suppose the interest rate is 6 percent. Among these three students, the quantity of loanable funds supplied would be $_____, and quantity demanded would be $______. Now suppose the interest rate is 12 percent. Among these three students, the quantity of loanable funds supplied would be $ ______, and quantity demanded would be $ _____.

Answer 1

How would the question best fit the bar thing