Multiple Choice
If the real interest rate is below the equilibrium real interest rate,
A) a shortage of of loanable funds exists, and the real interest rate rises.
B) lenders will be unable to find borrowers willing to borrow all of the available funds and the supply of loanable funds curve shifts rightward.
C) borrowers will be unable to borrow all of the funds they want to borrow and the demand for loanable funds curve shifts rightward.
D) borrowers will be unable to borrow all of the funds they want to borrow and the demand for loanable funds curve shifts leftward.
E) lenders will be unable to find borrowers willing to borrow all of the available funds and the supply of loanable funds curve shifts leftward.
Correct Answer:
Verified
Correct Answer:
Verified
Q53: If net taxes exceed government expenditures, the
Q54: Which of the following explains why the
Q55: The real interest rate<br>A)increases when the inflation
Q56: When the real interest rate increases,<br>A)the demand
Q57: If households believe they will experience higher
Q59: A fall in the real interest rate<br>A)shifts
Q60: According to the Ricardo- Barro effect, government
Q61: An increase in disposable income shifts the
Q62: Use the table below to answer the
Q63: The quantity of loanable funds demanded increases