If there is a surplus of loanable funds, then
a. the quantity demanded is greater than the quantity supplied and the interest rate will rise.
b. the quantity demanded is greater than the quantity supplied and the interest rate will fall.
c. the quantity supplied is greater than the quantity demanded and the interest rate will rise.
d. the quantity supplied is greater than the quantity demanded and the interest rate will fall.
d
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The crowding-out effect is small when firms are ______.
a. pessimistic about the future b. optimistic about the future c. considering sizable future investment d. operating at full-capacity
A consequence of a publicly owned natural monopoly is:
A. the loss of the profit motive. B. an increase in the motivation to improve efficiency. C. increased public pressure to reduce costs. D. reduced chance to remain open longer than political terms of office.