Multiple Choice
On any given day if the market interest rate is above the equilibrium interest rate level,
A) the Fed will declare a monetary policy.
B) there will be a shortage of loanable funds and interest rates will increase.
C) there will be a surplus of loanable funds at that rate and rates will decline to the equilibrium rate.
D) there will be a shortage of loanable funds at that rate and rates will increase to the equilibrium rate.
Correct Answer:
Verified
Correct Answer:
Verified
Q35: Which one of the following statements about
Q36: Which of the following actions will reduce
Q37: The Federal Reserve Bank of St. Louis
Q38: Negative realized real rates of interest are
Q39: An increase in the rate of expected
Q41: Increased government budget deficits<br>A) shifts the demand
Q42: The flow of funds approach to interest
Q43: Deficit spending units (DSU) are represented in
Q44: With the real rate at 3 percent,
Q45: If the real rate of interest is