Multiple Choice
If the real interest rate is below the equilibrium real interest rate,
A) lenders will be unable to find borrowers willing to borrow all of the available funds and the supply of loanable funds curve shifts leftward.
B) borrowers will be unable to borrow all of the funds they want to borrow and the demand for loanable funds curve shifts rightward.
C) a shortage of of loanable funds exists, and the real interest rate rises.
D) borrowers will be unable to borrow all of the funds they want to borrow and the demand for loanable funds curve shifts leftward.
E) lenders will be unable to find borrowers willing to borrow all of the available funds and the supply of loanable funds curve shifts rightward.
Correct Answer:
Verified
Correct Answer:
Verified
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