The interest rate is 5% in the market for loanable funds. Investors wish to borrow $100 million and savers wish to save $125 million at this interest rate. We would expect the interest rate to _____, as there is a _____ of loanable funds.
A) fall; shortage
B) rise; surplus
C) rise; shortage
D) fall; surplus
Correct Answer:
Verified
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Q62: The supply of loanable funds is _
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