The figure above shows the loanable funds market. If the real interest rate is 10 percent, then
A) there is a shortage in the loanable funds market.
B) the government must intervene in order to prevent a credit crisis.
C) the interest rate must increase.
D) savers will exit the market because of the high opportunity cost of saving.
E) there is a surplus in the loanable funds market.
E
Economics
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