If the aggregate demand for loanable funds increases without a corresponding increase in aggregate supply, there will be a surplus of loanable funds.

Question

Quizplus · Accepted Answer

When the aggregate demand for loanable funds increases without a corresponding increase in aggregate supply, it leads to a shortage of loanable funds, not a surplus, because the demand exceeds the available supply.

If the Aggregate Demand for Loanable Funds Increases Without a Corresponding