Which of the Following Statements Is True

question 70

Multiple Choice

Which of the following statements is true?

• A) An excess supply of credit exerts an upward pressure on the real rate of interest.
• B) An excess demand for credit exerts an upward pressure on the real rate of interest.
• C) At rates of interest below the equilibrium rate, there is an excess supply of credit.
• D) At rates of interest above the equilibrium rate, there is an excess demand for credit.

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