Multiple Choice
(Figure: Market for Loanable Funds) The graph shows the supply and demand for loanable funds. If the market interest rate is 3% 
A) the market will reach equilibrium only if lenders decide to save more.
B) more funds will be demanded by firms than supplied by households.
C) there will be pressure for the interest rate to rise.
D) there will be an excess supply of funds.
Correct Answer:
Verified
Correct Answer:
Verified
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