Multiple Choice
If the current market interest rate for loanable funds is above the equilibrium level, which of the following will most likely happen?
A) The quantity of loanable funds demanded will exceed the quantity of loanable funds supplied and the interest rate will rise.
B) The quantity of loanable funds supplied will exceed the quantity of loanable funds demanded and the interest rate will rise.
C) The quantity of loanable funds demanded will exceed the quantity of loanable funds supplied and the interest rate will fall.
D) The quantity of loanable funds supplied will exceed the quantity of loanable funds demanded and the interest rate will fall.
Correct Answer:
Verified
Correct Answer:
Verified
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