Which of the following is true if there is a shortage of loanable funds?
What will be an ideal response?
The quantity of loanable funds demanded is greater than the quantity of loanable funds supplied and the interest rate is below equilibrium.
You might also like to view...
In which of the following cases is the Coase theorem most likely to solve the externality?
a. Ed is allergic to his roommate's cat. b. Chemicals from manufacturing plants in the Midwest are causing acid rain in Canada. c. Polluted water runoff from farms is making residents of a nearby town sick. d. Industrialization around the world is causing global warming.
Other things the same, if foreign companies desired to buy more U.S. medical equipment and U.S. residents desired to buy more foreign bonds
a. net exports and the exchange rate would rise. b. net exports would rise, but what would happen to the exchange rate is uncertain. c. net exports would fall, but what would happen to the exchange rate is uncertain. d. net exports and the exchange rate would fall.