-The figure above shows the loanable funds market. If the real interest rate is 8 per cent, then
A) savers will exit the market because of the high opportunity cost of saving.
B) the interest rate must increase.
C) the government must intervene in order to prevent a credit crisis.
D) there is a shortage in the loanable funds market.
E) there is a surplus in the loanable funds market.
Correct Answer:
Verified
Q44: The real interest rate is _ related
Q45: Q46: Q47: When disposable income increases, saving will Q48: If expected profit falls, the demand for Q50: The quantity of loanable funds supplied increases Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A) decrease,
