Multiple Choice
If the real interest rate is below the equilibrium real interest rate,
A) lenders are unable to find borrowers willing to borrow all of the available funds and the real interest rate rises.
B) lenders are unable to find borrowers willing to borrow all of the available funds and the real interest rate falls.
C) borrowers are unable to borrow all of the funds they want to borrow and the real interest rate rises.
D) a surplus of loanable funds exists.
E) borrowers are unable to borrow all of the funds they want to borrow and the real interest rate falls.
Correct Answer:
Verified
Correct Answer:
Verified
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