Home / Questions / The current market rate of interest is 8 percent. Which of the following is true, if equil
The current market rate of interest is 8 percent. Which of the following is true, if equilibrium rate of interest in the economy is 7 percent?
[A]There is a surplus of loanable funds, and the market rate of interest would increase
[B]There is a surplus of loanable funds, and the market rate of interest would decrease
[C]There is a shortage of loanable funds, and the market rate of interest would increase
[D]There is a shortage of loanable funds, and the market rate of interest would decrease
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