The equilibrium interest rate
A) equates the aggregate demand for loanable funds with the aggregate supply of loanable funds.
B) equates the elasticity of the aggregate demand for and supply of loanable funds.
C) decreases as the aggregate supply of loanable funds decreases.
D) increases as the aggregate demand for loanable funds decreases.
Correct Answer:
Verified
Q2: If economic conditions become less favorable, then
A)expected
Q3: The quantity of loanable funds supplied is
Q4: Businesses demand loanable funds to
A)finance installment debt.
B)subsidize
Q5: Which of the following is likely to
Q6: The Fisher effect states that the
A)nominal
Q7: The federal government's demand for loanable funds
Q8: The equilibrium interest rate should
A)fall when the
Q9: The _ sector is the largest supplier
Q10: The demand for funds resulting from business
Q11: If interest rates are _, _ projects
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