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If the Quantity of Loanable Funds Demanded Exceeds the Quantity

Question 50

Multiple Choice

If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied, there is a


A) shortage and the interest rate is below the equilibrium level.
B) surplus and the interest rate is above the equilibrium level.
C) surplus and the interest rate is below the equilibrium level.
D) shortage and the interest rate is above the equilibrium level.

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