Refer to the figure above. Which of the following statements is true when the credit demand curve is CD2 and the credit supply curve is CS1?
A) At all rates of interest below 7% there will be an excess demand for credit.
B) At all rates of interest below 5% there will be an excess demand for credit.
C) At all rates of interest below 6% there will be an excess demand for credit.
D) At all rates of interest below 8% there will be an excess demand for credit.
B
Economics
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