When the Actual Real Interest Rate Is Less Than the Equilibrium

question 227

Multiple Choice

When the actual real interest rate is less than the equilibrium real interest rate

• A) the equilibrium real interest rate will rise.
• B) borrowers find it difficult to borrow.
• C) there is a shortage of loanable funds.
• D) Both answers B and C are correct.

---

Definitions:

Paper Documents

physical documents consisting of sheets of paper, containing text or images, that are used to record information.

Formal Communication

Structured exchanges of information following specific rules or protocols, often within organizational settings, such as reports or official letters.

Email

A method of exchanging digital messages over the Internet between people using electronic devices.

Conventions Of Communication

Established norms and rules that govern how communication is conducted within a particular culture or community.