If the Real Interest Rate Is Lower Than the Equilibrium

question 144

Multiple Choice

If the real interest rate is lower than the equilibrium real interest rate,________.

• A) interest rates tend to fall further
• B) the quantity of credit demanded equals the quantity of credit supplied
• C) the quantity of credit demanded falls short of the quantity of credit supplied
• D) the quantity of credit supplied falls short of the quantity of credit demanded

---

Definitions:

Composite Scores

Aggregated scores derived from combining separate scores to provide a summary measure.

Subtest

A component of a larger test, designed to measure a specific aspect of the test taker's knowledge, ability, or skill.

Areas

Spatial or conceptual zones, regions, or fields designated for specific purposes or characterized by certain features.

Intelligence Tests

Standardized assessments designed to measure human intelligence and cognitive abilities in relation to an age group or population.