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If the Current Market Interest Rate for Loanable Funds Is

Question 175

Multiple Choice

If the current market interest rate for loanable funds is above the equilibrium level, what would we expect to happen?


A) Because there is a surplus of loanable funds, the interest rate will rise.
B) Because there is a shortage of loanable funds, the interest rate will rise.
C) Because there is a shortage of loanable funds, the interest rate will fall.
D) Because there is a surplus of loanable funds, the interest rate will fall.

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