Multiple Choice
Suppose the current real interest rate is 4 percent and the equilibrium real interest rate is 3 percent. Choose the correct statement.
A) The supply of loanable funds increases.
B) There is a surplus of loanable funds.
C) There is a shortage of loanable funds.
D) There is neither a shortage nor surplus of loanable funds.
E) The demand for loanable funds decreases.
Correct Answer:
Verified
Correct Answer:
Verified
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