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.

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Definitions:

Axillary

Relating to the region under the arm.

Dorsal Root Ganglion

involves clusters of sensory neurons located near the spinal cord that transmit sensory information to the central nervous system.

Central Canal

The cerebrospinal fluid-filled space running longitudinally through the length of the entire spinal cord.

Ventral Root

The part of a spinal nerve that is responsible for conveying motor output from the central nervous system to the peripheral organs and muscles.