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If the Quantity of Loanable Funds Demanded Exceeds the Quantity

Question 193

Multiple Choice

If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied,


A) there is a surplus so interest rates will rise.
B) there is a surplus so interest rates will fall.
C) there is a shortage so interest rates will rise.
D) there is a shortage so interest rates will fall.

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