If the Quantity of Loanable Funds Demanded Exceeds the Quantity

question 193

Multiple Choice

If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied,

• A)there is a surplus so interest rates will rise.
• B)there is a surplus so interest rates will fall.
• C)there is a shortage so interest rates will rise.
• D)there is a shortage so interest rates will fall.

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