If the real interest rate is below equilibrium, which of the following is likely to occur?
a. Lenders will raise their interest rates which will encourage saving
b. Lenders will raise their interest rates which will encourage borrowing.
c. Lenders will lower their interest rates which will encourage saving.
d. Lenders will lower their interest rates which will encourage borrowing.
a
Economics
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In general, stocks are _________ risky than bonds, and have a _________ rate of return.
A. more; higher B. more; lower C. less; higher D. less; lower
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