Multiple Choice
At the current interest rate, the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded. Therefore
A) equilibrium will not be achieved until something shifts the demand for loanable funds curve rightward.
B) equilibrium will not be achieved until something shifts the supply of loanable funds curve leftward.
C) the real interest rate is below the equilibrium level.
D) equilibrium will not be achieved until something shifts the supply of loanable funds curve rightward.
E) the real interest rate is above the equilibrium level.
Correct Answer:
Verified
Correct Answer:
Verified
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