Multiple Choice
If the current market interest rate for loanable funds is below the equilibrium level, which of the following would we expect to happen?
A) Because there is a surplus of loanable funds, the interest rate will rise.
B) Because there is a shortage of loanable funds, the interest rate will rise.
C) Because there is a shortage of loanable funds, the interest rate will fall.
D) Because there is a surplus of loanable funds, the interest rate will fall.
Correct Answer:
Verified
Correct Answer:
Verified
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