Multiple Choice
If people decide that some country is now a more risky place to keep their saving,then at the original interest rate in that country there is a
A) surplus of loanable funds,so the interest rate increases.
B) surplus of loanable funds,so the interest rate decreases.
C) shortage of loanable funds,so the interest rate increases.
D) shortage of loanable funds,so the interest rate decreases.
Correct Answer:
Verified
Correct Answer:
Verified
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