In nations where the supply of real loanable funds is inelastic, the real risk-free interest rate is likely to:
a. To fluctuate more than the equilibrium quantity of loanable funds per period.
b. Be very stable over time and not to react strongly on changes in demand.
c. Be high compared to countries where the supply of real loanable funds is elastic.
d. None of the above.
.A
Economics
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Indicate whether the statement is true or false
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