Solved

Suppose the Current Real Interest Rate Is 4 Percent and the Equilibrium

Question 146

Multiple Choice

Suppose the current real interest rate is 4 percent and the equilibrium real interest rate is 3 percent. Then


A) there is a surplus of loanable funds.
B) prices rise and inflation occurs.
C) there is neither a shortage nor surplus of loanable funds.
D) there is a shortage of loanable funds.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions