In the loanable funds market, if the real interest rate is higher than the equilibrium real interest rate,
A) there is a shortage of loanable funds.
B) there is a surplus of loanable funds.
C) there is a surplus of investment.
D) the demand for loanable funds curve shifts rightward to restore the equilibrium.
E) the demand for loanable funds curve shifts leftward to restore the equilibrium.
Correct Answer:
Verified
Q146: The equilibrium real interest rate is 5
Q147: Q148: A decrease in expected profit Q149: At the current interest rate, the quantity Q150: If a surplus of loanable funds exists Q152: Q153: Q154: Suppose firms become more optimistic about the Q155: Other things remaining the same, a _ Q156: 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) lowers the
