If the Real Interest Rate Is Above the Equilibrium Real

question 1

Multiple Choice

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

• A)lenders are unable to find borrowers willing to borrow all of the available funds and the real interest rate rises.
• B)a shortage of loanable funds exists.
• C)lenders are unable to find borrowers willing to borrow all of the available funds and the real interest rate falls.
• D)borrowers are unable to borrow all of the funds they want to borrow and the real interest rate rises.
• E)borrowers are unable to borrow all of the funds they want to borrow and the real interest rate falls.

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