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If the Interest Rate in the Market for Loanable Funds

Question 102

Multiple Choice

If the interest rate in the market for loanable funds is below the market-clearing rate,then:


A) individuals will become more impatient.
B) individuals will become less impatient.
C) there will be a shortage of savings,and demanders will bid the interest rate up as they compete to borrow.
D) there will be a surplus of savings,and suppliers will bid the interest rate down as they compete to lend.

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