The equilibrium interest rate should
A) fall when the aggregate supply of funds exceeds the aggregate demand for funds.
B) rise when the aggregate supply of funds exceeds the aggregate demand for funds.
C) fall when the aggregate demand for funds exceeds the aggregate supply of funds.
D) rise when the aggregate demand for funds equals the aggregate supply of funds.
E) rise when the aggregate supply of funds exceeds the aggregate demand for funds AND fall when the aggregate demand for funds exceeds the aggregate supply of funds.
Correct Answer:
Verified
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
Q9: The _ sector is the largest supplier
Q10: The demand for funds resulting from business
Q11: If interest rates are _, _ projects
Q12: The required return to implement a given
Q13: For a given set of foreign interest
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