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If There Is a Surplus of Loanable Funds, the Quantity

Question 24

Multiple Choice

If there is a surplus of loanable funds, the quantity demanded is


A) greater than the quantity supplied and the interest rate will rise.
B) greater than the quantity supplied and the interest rate will fall.
C) less than the quantity supplied and the interest rate will rise.
D) less than the quantity supplied and the interest rate will fall.

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