The equilibrium interest rate in the loanable funds market is at the neutral interest rate when the economy is:
A) in neutral.
B) experiencing very high inflation.
C) above its potential.
D) below its potential.
Correct Answer:
Verified
Q76: If a credible report emerges that indicates
Q77: If a country reaches a new trade
Q78: If banks are worried about high default
Q79: If new regulations result in banks relaxing
Q80: Equilibrium in the loanable funds market determines
Q82: The neutral interest rate occurs when the
Q83: When people worry about the future and
Q84: When people become optimistic about the future
Q85: Crowding out reduces:
A)the real interest rate.
B)private investment.
C)corporate
Q86: Crowding out is the:
A)increase in business investment
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