If the Real Interest Rate Is Below the Equilibrium Real

question 17

Multiple Choice

If the real interest rate is below 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 surplus of loanable funds exists.

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