The equilibrium interest rate should
A) fall when the aggregate supply funds exceeds aggregate demand for funds.
B) rise when the aggregate supply of funds exceeds aggregate demand for funds.
C) fall when the aggregate demand for funds exceeds aggregate supply of funds.
D) rise when aggregate demand for funds equals aggregate supply of funds.
E) B and C
Correct Answer:
Verified
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Q6: At any given point in time, households
Q9: Businesses demand loanable funds to
A) finance installment
Q10: The equilibrium interest rate
A) equates the aggregate
Q11: If interest rates are _, _ projects
Q12: The required return to implement a given
Q13: For a given set of foreign interest
Q16: The level of installment debt as a
Q17: The _ sector is the largest supplier
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