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If the Real Interest Rate Is Above the Equilibrium Real

Question 136

Multiple Choice

If the real interest rate is above the equilibrium real interest rate,


A) borrowers will be unable to borrow all of the funds they want to borrow and the real interest rate will rise.
B) borrowers will be unable to borrow all of the funds they want to borrow and the real interest rate will fall.
C) lenders will be unable to find borrowers willing to borrow all of the available funds and the real interest rate will rise.
D) lenders will be unable to find borrowers willing to borrow all of the available funds and the real interest rate will fall.

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