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When the Real Interest Rate ________ the Equilibrium Real Interest

Question 38

Multiple Choice

When the real interest rate ________ the equilibrium real interest rate, there is a ________ of loanable funds and the real interest rate ________.


A) exceeds; surplus; rises
B) is less than; surplus; rises
C) exceeds; shortage; rises
D) is less than; shortage; rises
E) is less than; shortage; falls

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