Multiple Choice
If there is surplus of loanable funds, which of the following is most likely to happen?
A) The supply for loanable funds shifts right and the demand shifts left.
B) The supply for loanable funds shifts left and the demand shifts right.
C) Neither curve shifts, but the quantity of loanable funds supplied increases and the quantity demanded decreases as the interest rate rises to equilibrium.
D) Neither curve shifts, but the quantity of loanable funds supplied decreases and the quantity demanded increases as the interest rate falls to equilibrium.
Correct Answer:
Verified
Correct Answer:
Verified
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