If the Real Interest Rate Is Below Equilibrium, Which of the Following

Multiple Choice

If the real interest rate is below equilibrium, which of the following is likely to occur?

A) ​Lenders will raise their interest rates which will encourage saving.
B) ​Lenders will raise their interest rates which will encourage borrowing.
C) ​Lenders will lower their interest rates which will encourage saving.
D) ​Lenders will lower their interest rates which will encourage borrowing.