The Equilibrium Interest Rate

question 28

Multiple Choice

The equilibrium interest rate

• A)equates the aggregate demand for loanable funds with the aggregate supply of loanable funds.
• B)equates the elasticity of the aggregate demand for and supply of loanable funds.
• C)decreases as the aggregate supply of loanable funds decreases.
• D)increases as the aggregate demand for loanable funds decreases.

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Definitions:

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