The Equilibrium Interest Rate Should

question 10

Multiple Choice

The equilibrium interest rate should

• A) fall when the aggregate supply of funds exceeds the aggregate demand for funds.
• B) rise when the aggregate supply of funds exceeds the aggregate demand for funds.
• C) fall when the aggregate demand for funds exceeds the aggregate supply of funds.
• D) rise when the aggregate demand for funds equals the aggregate supply of funds.
• E) B and C

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