Question

If, at the current interest rate, the quantity of loanable funds supplied is less than the quantity of loanable funds demanded, then
A) the supply of loanable funds curve shifts rightward and the real interest rate rises.
B) the supply of loanable funds curve shifts leftward and the real interest rate falls.
C) the real interest rate falls.
D) the real interest rate rises.
E) the supply of loanable funds curve shifts leftward and the real interest rate rises.

Answer

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