The ________ Rate of Interest Is Determined by Interaction of the Supply

question 26

Multiple Choice

The ________ rate of interest is determined by interaction of the supply and demand functions. As a cost of borrowing and a reward for lending, the rate must reach the point where total supply of savings ________ total demand for borrowing and investment.

• A) equilibrium; is greater
• B) minimum; equals
• C) equilibrium; equals
• D) minimum; is greater

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