Suppose the market for loanable funds is in equilibrium. If the expected profit falls, the equilibrium real interest rate ________ and the quantity of loanable funds ________.
A) falls; decreases
B) falls; increases
C) rises; increases
D) rises; decreases
Correct Answer:
Verified
Q139: Q140: Q141: Suppose the real interest rate rises and Q142: If the real interest rate is above Q143: An increase in disposable income shifts the Q145: Suppose the real interest rate rises and Q146: If the real interest rate is below Q147: 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![]()
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