Multiple Choice
If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied,
A) there is a surplus and the interest rate is above the equilibrium level.
B) there is a surplus and the interest rate is below the equilibrium level.
C) there is a shortage and the interest rate is above the equilibrium level.
D) there is a shortage and the interest rate is below the equilibrium level.
Correct Answer:
Verified
Correct Answer:
Verified
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