If the aggregate demand for loanable funds increases without a corresponding ____ in aggregate supply, there will be a ____ of loanable funds.
A)increase; surplus
B)increase; shortage
C)decrease; surplus
D)decrease; shortage

Question

If the aggregate demand for loanable funds increases without a corresponding ____ in aggregate supply, there will be a ____ of loanable funds. ​
A)increase; surplus
B)increase; shortage
C)decrease; surplus
D)decrease; shortage

Quizplus · Accepted Answer

When the demand for loanable funds increases without a corresponding increase in supply, it leads to a shortage because the demand exceeds the available supply.

If the Aggregate Demand for Loanable Funds Increases Without a Corresponding