Solved

If the Equilibrium Interest Rate in the Market Is Estimated

Question 45

Multiple Choice

If the equilibrium interest rate in the market is estimated to be 6%,which of the following is likely to occur if rates increase to 7%?


A) The supply of funds shifts to the right.
B) The total supply of lending shifts to the right.
C) The quantity of funds supplied is greater than the quantity of funds demanded.
D) The quantity of funds demanded is greater than the quantity of funds supplied.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions