When the Real Interest Rate ________ the Equilibrium Real Interest

question 34

Multiple Choice

When the real interest rate ________ the equilibrium real interest rate,there is a ________ of loanable funds and the real interest rate ________.

• A)is less than;shortage;falls
• B)is less than;surplus;rises
• C)is less than;shortage;rises
• D)exceeds;surplus;rises
• E)exceeds;shortage;rises

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Definitions:

Steps

Sequential actions or procedures followed to achieve a particular end.

Day

A 24-hour period from midnight to midnight, representing the cycle of one complete rotation of Earth on its axis.

Moderate

Something that is average in quantity, intensity, or quality; neither too much nor too little.

Vigorous Physical Activity

Exercise that significantly raises the heart rate and respiration, typically more intense than moderate exercise.