The equilibrium interest rate
A) equates the aggregate demand for funds with the aggregate supply of loanable funds.
B) equates the elasticity of the aggregate demand and supply for loanable funds.
C) decreases as the aggregate supply of loanable funds decreases.
D) increases as the aggregate demand for loanable funds decreases.
Correct Answer:
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Q5: If the real interest rate was negative
Q6: The Fisher effect states that the
A)nominal
Q6: At any given point in time, households
Q8: The quantity of loanable funds supplied is
Q9: Businesses demand loanable funds to
A) finance installment
Q11: If interest rates are _, _ projects
Q12: The equilibrium interest rate should
A) fall when
Q13: For a given set of foreign interest
Q15: The demand for funds resulting from business
Q20: If inflation is expected to decrease, then
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