Suppose the current real interest rate is 4 per cent and the equilibrium real interest rate is 3 per cent. Then
A) prices rise and inflation occurs.
B) there is a surplus of loanable funds.
C) there is neither a shortage nor surplus of loanable funds.
D) there is a shortage of loanable funds.
Correct Answer:
Verified
Q53: Net investment equals
A) capital stock minus depreciation.
B)
Q84: Q89: Suppose that Country A (a small country)has Q91: Which of the following is NOT a Q92: As the _ interest rate increases, the Q93: _ increases households' saving. Q95: If the Ricardo- Barro effect is present, Q96: If net taxes exceed government expenditures, the
A)A tax cut that
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