Multiple Choice
If the quantity of loanable funds supplied is greater than the quantity demanded, what best describes the difference?
A) There is a surplus of loanable funds, and the interest rate will fall.
B) There is a shortage of loanable funds, and the interest rate will rise.
C) There is a surplus of loanable funds that is used to buy foreign assets.
D) There is a shortage of loanable funds that is used to buy foreign assets.
Correct Answer:
Verified
Correct Answer:
Verified
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