If the Government Imposes an Interest Rate Ceiling Below the Equilibrium

question 135

Multiple Choice

If the government imposes an interest rate ceiling below the equilibrium interest rate in the loanable funds market, then

• A) the quantity of savings supplied will be less than the quantity of loanable funds demanded.
• B) the quantity of savings supplied will be more than the quantity of loanable funds demanded.
• C) the quantity of savings supplied will be equal to the quantity of loanable funds demanded.
• D) Interest rate ceilings have no effects on the loanable funds market.

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