Suppose the current real interest rate is 4 percent and the equilibrium real interest rate is 3 percent. Then
A) there is a shortage of loanable funds.
B) there is neither a shortage nor surplus of loanable funds.
C) prices rise and inflation occurs.
D) there is a surplus of loanable funds.
Correct Answer:
Verified
Q152: If the real interest rate is below
Q153: A decrease in disposable income _.
A) has
Q154: An increase in the real interest rate
Q155: Which of the following is true?
I. As
Q156: Q158: If the real interest rate is above Q159: In the market for loanable funds, if Q160: If the quantity of loanable funds supplied Q161: A fall in the real interest rate Q162: 
A)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents