Multiple Choice
If the real interest rate is above the equilibrium real interest rate,
A) borrowers will be unable to borrow all of the funds they want to borrow and the demand for loanable funds curve will shift leftward.
B) a surplus of loanable funds will cause the real interest rate to fall.
C) lenders will be unable to find borrowers willing to borrow all of the available funds and the real interest rate will rise.
D) borrowers will be unable to borrow all of the funds they want to borrow and the demand for loanable funds curve will shift rightward.
Correct Answer:
Verified
Correct Answer:
Verified
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