"When There Is a Shortage of Loanable Funds, the Real

question 148

Essay

"When there is a shortage of loanable funds, the real interest rate will increase." Explain whether the previous statement is correct or not.

---

Definitions:

Positively Charged Particle

An atom or molecule with more protons than electrons, giving it a net positive charge.

Midline

An imaginary line that divides the body into equal left and right halves.

Upward Direction

Movement or orientation towards a higher point or position.

Cell Membrane

The semipermeable membrane surrounding the cytoplasm of a cell, regulating the passage of substances in and out.