Multiple Choice
If the real interest rate is below the equilibrium real interest rate, then the quantity of loanable funds supplied is
A) greater than the quantity of loanable funds demanded, and the real interest rate will fall.
B) less than the quantity of loanable funds demanded, and the real interest rate will rise.
C) greater than the quantity of loanable funds demanded, and the real interest rate will rise.
D) less than the quantity of loanable funds demanded, and the real interest rate will fall.
Correct Answer:
Verified
Correct Answer:
Verified
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