The Equilibrium Interest Rate Should

question 26

Multiple Choice

The equilibrium interest rate should

• A)fall when the aggregate supply of funds exceeds the aggregate demand for funds.
• B)rise when the aggregate supply of funds exceeds the aggregate demand for funds.
• C)fall when the aggregate demand for funds exceeds the aggregate supply of funds.
• D)rise when the aggregate demand for funds equals the aggregate supply of funds.
• E)rise when the aggregate supply of funds exceeds the aggregate demand for funds AND fall when the aggregate demand for funds exceeds the aggregate supply of funds.

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