If There Is a Surplus of Loanable Funds, What Best

question 182

Multiple Choice

If there is a surplus of loanable funds, what best describes the difference?

• A) The quantity demanded is less than the quantity supplied, and the interest rate will rise.
• B) The quantity demanded is greater than the quantity supplied, and the interest rate will fall.
• C) The quantity demanded is less than the quantity supplied, and the excess is the net capital outflow
• D) The quantity demanded is less than the quantity supplied, and the shortage is the net capital inflow.

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