At the current interest rate, the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded.Therefore
A) the real interest rate is below the equilibrium level.
B) the real interest rate is above the equilibrium level.
C) equilibrium will not be achieved until something shifts the supply of loanable funds curve leftward.
D) equilibrium will not be achieved until something shifts the demand for loanable funds curve rightward.
E) equilibrium will not be achieved until something shifts the supply of loanable funds curve rightward.
Correct Answer:
Verified
Q144: When the real interest rate _ the
Q145: The demand for loanable funds
A) increases in
Q146: The equilibrium real interest rate is 5
Q147: Q148: A decrease in expected profit Q150: If a surplus of loanable funds exists Q151: In the loanable funds market, if the 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