If the Real Interest Rate Is Less Than the Equilibrium

question 179

Multiple Choice

If the real interest rate is less than the equilibrium real interest rate, there is a ________ of loanable funds and ________.

• A) surplus; some borrowers cannot find the funds they want
• B) shortage; some borrowers cannot find the funds they want
• C) surplus; borrowers have an easy time finding the funds they want
• D) shortage; borrowers have an easy time finding the funds they want
• E) shortage; savers increase their saving supply to restore the equilibrium

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