Multiple Choice
Everything else remaining unchanged,what is likely to happen to the equilibrium real interest rate and quantity of credit if the credit demand curve shifts to the right?
A) Both the equilibrium rate of interest and quantity of credit will increase.
B) Both the equilibrium rate of interest and quantity of credit will decrease.
C) The equilibrium rate of interest will increase, and the equilibrium quantity of credit will decrease.
D) The equilibrium rate of interest will decrease, and the equilibrium quantity of credit will increase.
Correct Answer:
Verified
Correct Answer:
Verified
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