If the Real Interest Rate Is Above the Equilibrium Real

question 56

Multiple Choice

If the real interest rate is above the equilibrium real interest rate,

• A)lenders are unable to find borrowers willing to borrow all of the available funds and the real interest rate falls.
• B)borrowers are unable to borrow all of the funds they want to borrow and the real interest rate rises.
• C)lenders are unable to find borrowers willing to borrow all of the available funds and the real interest rate rises.
• D)borrowers are unable to borrow all of the funds they want to borrow and the real interest rate falls.
• E)a shortage of loanable funds exists.

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Definitions:

Tender Of Performance

Tender of Performance refers to an offer by one party to perform their obligations under a contract, demonstrating readiness and willingness to fulfill the contract terms.

Bilateral Contract

A contract type involving two parties where each promises to perform an act in exchange for the other party's act.

Perfect Tender Rule

A principle in sales law that allows buyers to reject goods if they fail to meet every aspect of the contractual terms.

Material Breach

A significant violation or failure to perform one's duties under a contract, justifying termination by the other party.