If the real interest rate is above the equilibrium real interest rate,
A) lenders will be unable to find borrowers willing to borrow all of the available funds and the real interest rate will rise.
B) lenders will be unable to find borrowers willing to borrow all of the available funds and the real interest rate will fall.
C) borrowers will be unable to borrow all of the funds they want to borrow and the real interest rate will rise.
D) borrowers will be unable to borrow all of the funds they want to borrow and the real interest rate will fall.
Correct Answer:
Verified
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: Q157: Suppose the current real interest rate is Q159: In the market for loanable funds, if Q160: If the quantity of loanable funds supplied Q161: A fall in the real interest rate![]()
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