Multiple Choice
If the real interest rate is less than the equilibrium real interest rate, there is a ________ of loanable funds and ________.
A) surplus; some borrowers cannot find the funds they want
B) shortage; some borrowers cannot find the funds they want
C) surplus; borrowers have an easy time finding the funds they want
D) shortage; borrowers have an easy time finding the funds they want
E) shortage; savers increase their saving supply to restore the equilibrium
Correct Answer:
Verified
Correct Answer:
Verified
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