If the Real Interest Rate Is Less Than the Equilibrium

question 93

Multiple Choice

If the real interest rate is less than the equilibrium real interest rate, there is a _{--------------------}of loanable funds and _{--------------------}.

• A)shortage; borrowers have an easy time finding the funds they want
• B)surplus; some borrowers cannot find the funds they want
• C)surplus; borrowers have an easy time finding the funds they want
• D)shortage; savers increase their saving supply to restore the equilibrium
• E)shortage; some borrowers cannot find the funds they want

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