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Question
On any given day if the market interest rate is above the equilibrium interest rate level,a. the Fed will declare a monetary policy.
b. there will be a shortage of loanable funds and interest rates will increase.
c. there will be a surplus of loanable funds at that rate and rates will decline to the equilibrium rate.
d. there will be a shortage of loanable funds at that rate and rates will increase to the equilibrium rate.
Answer
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Related questions
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The Office of the Comptroller of the Currency (OCC) is the oldest bank regulatory agency.
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