-In the above figure, if the real interest rate is 8 percent, then there is
A) a leftward shift in the SLF curve.
B) an increase in the equilibrium interest rate.
C) a rightward shift in the DLF curve.
D) a surplus of loanable funds.

Question

-In the above figure, if the real interest rate is 8 percent, then there is
A) a leftward shift in the SLF curve. 
B) an increase in the equilibrium interest rate. 
C) a rightward shift in the DLF curve. 
D) a surplus of loanable funds.

Quizplus · Accepted Answer

A real interest rate of 8 percent suggests that the interest rate is higher than the equilibrium rate, leading to a surplus of loanable funds as supply exceeds demand at this rate.

-In the Above Figure, If the Real Interest Rate Is