If a surplus of loanable funds exists in the loanable funds market, the real interest rate ________ and the quantity of saving ________
A) falls; increases
B) rises; decreases
C) falls; does not change
D) rises; increases
E) falls; decreases
E
Economics
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Suppose the economy experiences a recessionary gap. Expansionary monetary policy will
A) increase interest rates and increase exchange rates. B) increase interest rates and decrease exchange rates. C) decrease interest rates and increase exchange rates. D) decrease interest rates and decrease exchange rates.
Economics
Which of the following determines how much money an individual will decide to hold?
a. Investment spending b. Income taxes c. The price level d. The supply of money e. Real GDP
Economics