Figure 19-1
-Refer to Figure 19-1. In the Figure shown, if the real interest rate is 6 percent, there will be pressure for
A)the real interest rate to fall.
B)the demand for loanable funds curve to shift left.
C)the supply for loanable funds curve to shift right.
D)All of the above are correct.

Question

Figure 19-1 
-Refer to Figure 19-1. In the Figure shown, if the real interest rate is 6 percent, there will be pressure for
A)the real interest rate to fall. 
B)the demand for loanable funds curve to shift left. 
C)the supply for loanable funds curve to shift right. 
D)All of the above are correct.

Quizplus · Accepted Answer

If the real interest rate is higher than the equilibrium rate, there will be excess supply of loanable funds, leading to pressure for the real interest rate to fall.

Figure 19-1 -Refer to Figure 19-1. in the Figure Shown, If the Shown