If the Quantity of Loanable Funds Supplied Is Greater Than

question 16

Multiple Choice

If the quantity of loanable funds supplied is greater than the quantity demanded, which statement best describes the difference?

• A) There is a deficit of loanable funds and the excess is net capital outflow.
• B) There is a deficit of loanable funds and the shortage is net capital outflow.
• C) There is a surplus of loanable funds and the excess is net capital outflow.
• D) There is a surplus of loanable funds, and the shortage is net capital outflow.

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