Question

At the current interest rate, the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded. Therefore
A) the real interest rate is below the equilibrium level.
B) the real interest rate is above the equilibrium level.
C) equilibrium will not be achieved until something shifts the supply of loanable funds curve leftward.
D) equilibrium will not be achieved until something shifts the demand for loanable funds curve rightward.
E) equilibrium will not be achieved until something shifts the supply of loanable funds curve rightward.

Answer

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