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In the Loanable Funds Market, If the Real Interest Rate

Question 205

Multiple Choice

In the loanable funds market, if the real interest rate is higher than the equilibrium real interest rate,


A) there is a shortage of loanable funds.
B) there is a surplus of loanable funds.
C) there is a surplus of investment.
D) the demand for loanable funds curve shifts rightward to restore the equilibrium.
E) the demand for loanable funds curve shifts leftward to restore the equilibrium.

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