If the quantity of credit demanded in a market exceeds the quantity of credit supplied in the market,________.

Question

Quizplus · Accepted Answer

According to the law of supply and demand, if the quantity demanded of a product or service exceeds the quantity supplied, the price of that product or service tends to rise. In the case of credit, the price or interest rate tends to rise when the demand for credit exceeds its supply. This is because lenders have more bargaining power and can charge higher interest rates to borrowers who are willing to pay more for credit.

If the Quantity of Credit Demanded in a Market Exceeds