If the Real Interest Rate Is Below the Equilibrium Real

question 59

Multiple Choice

If the real interest rate is below the equilibrium real interest rate,

• A) borrowers will be unable to borrow all of the funds they want to borrow and the real interest rate will rise.
• B) lenders will be unable to find borrowers willing to borrow all of the available funds and the real interest rate will fall.
• C) borrowers will be unable to borrow all of the funds they want to borrow and the real interest rate will fall.
• D) lenders will be unable to find borrowers willing to borrow all of the available funds and the real interest rate will rise.

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