Figure 32.1 represents the market for loanable funds.Which of the following is true at the equilibrium interest rate?
A) The rate of return on capital equals the interest rate.
B) The rate of return on capital is less than the interest rate.
C) The rate of return on capital is greater than the interest rate.
D) There is no relationship between the rate of return on capital and the interest rate.
Correct Answer:
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