If the real interest rate is lower than the equilibrium real interest rate:
A) the quantity of credit demanded equals the quantity of credit supplied.
B) the quantity of credit demanded falls short of the quantity of credit supplied.
C) the quantity of credit supplied falls short of the quantity of credit demanded.
D) interest rates tend to fall further.
C
Economics
You might also like to view...
How can a partnership raise funds needed for firm expansion?
What will be an ideal response?
Economics
Which of the following is a TRUE statement concerning bank holding companies?
A) Bank holding companies own few large banks. B) Bank holding companies have experienced dramatic growth in the past three decades. C) The McFadden Act has prevented bank holding companies from establishing branch banks. D) Bank holding companies can own only banks.
Economics