Everything else remaining unchanged, what is likely to happen to the equilibrium real interest rate and quantity of credit if the credit demand curve shifts to the left?
A) Both equilibrium rate of interest and quantity of credit will decrease.
B) Both equilibrium rate of interest and quantity of credit will increase.
C) The equilibrium rate of interest will decrease and the quantity of credit will increase.
D) The equilibrium rate of interest will increase and the quantity of credit will decrease.
A
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i. can never occur because there are always people who want a good but cannot afford it. ii. occurs at the intersection of the supply and demand curves. iii. is the point where the price equals the quantity. A) ii and iii B) i only C) ii only D) i and ii E) iii only
An asset is liquid if it
A) is of intrinsic value. B) can be exchanged for other goods and services. C) is a store of value. D) can be obtained or disposed of without losing much of its nominal value.