If the Current Market Interest Rate for Loanable Funds Is

Multiple Choice

If the current market interest rate for loanable funds is above 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.