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    Financial Markets and Institutions Study Set 7
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    Exam 2: Determination of Interest Rates
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    If the Aggregate Demand for Loanable Funds Increases Without a Corresponding
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If the Aggregate Demand for Loanable Funds Increases Without a Corresponding

Question 31

Question 31

Multiple Choice

If the aggregate demand for loanable funds increases without a corresponding ____ in aggregate supply, there will be a ____ of loanable funds. ​


A) increase; surplus
B) increase; shortage
C) decrease; surplus
D) decrease; shortage

Correct Answer:

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