Question



The figure above shows the loanable funds market. If the real interest rate is 2 percent, then
A) there will be government intervention in the market to make sure there is no credit crisis.
B) there will be a leftward shift in the demand for loanable funds curve.
C) there is a surplus in the loanable funds market.
D) there is a shortage in the loanable funds market
E) the demand for loanable funds curve will shift rightward.

Answer

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