If the interest rate were below the equilibrium level, the quantity of loanable funds supplied would _____ the quantity demanded.
A)be greater than
B)exactly equal
C)be less than
D)be independent of

Question

Quizplus · Accepted Answer

If the interest rate were below the equilibrium level, the quantity of loanable funds supplied would be less than the quantity demanded. This is because at lower interest rates, savers are less incentivized to save, leading to a decrease in the supply of loanable funds, while borrowers are more incentivized to borrow, increasing the demand.

If the Interest Rate Were Below the Equilibrium Level, the Quantity