In the market for loans, if the interest rate is above market equilibrium quantity demanded is

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When the interest rate is above the market equilibrium, the cost of borrowing is higher, leading to a decrease in the quantity of loans demanded. Conversely, higher interest rates make lending more attractive, increasing the quantity of loans supplied. This mismatch results in a surplus of money available for loans, as the quantity supplied exceeds the quantity demanded.

In the Market for Loans, If the Interest Rate Is