Multiple Choice
For an imaginary economy,when the real interest rate is 7 percent,the quantity of loanable funds demanded is $500 and the quantity of loanable funds supplied is $500.Currently,the nominal interest rate is 9 percent and the inflation rate is 4 percent.Currently,
A) the market for loanable funds is in equilibrium.
B) the quantity of loanable funds supplied exceeds the quantity of loanable funds demanded,and as a result the real interest rate will rise.
C) the quantity of loanable funds supplied exceeds the quantity of loanable funds demanded,and as a result the real interest rate will fall.
D) the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied,and as a result the real interest rate will rise.
Correct Answer:
Verified
Correct Answer:
Verified
Q78: Suppose there is a shortage in the
Q114: Figure 26-4.On the horizontal axis of the
Q115: Other things the same,an increase in taxes
Q117: If the government instituted an investment tax
Q118: In the loanable funds model,an increase in
Q120: A larger budget surplus<br>A)raises the interest rate
Q121: The nominal interest rate increases by 5
Q122: What would happen in the market for
Q171: If the government budget deficit increases, which
Q180: In the terminology of macroeconomics, what's the