If there is a surplus of loanable funds, then the quantity of loanable funds
A) demanded is greater than the quantity of loanable funds supplied and the interest rate will rise.
B) demanded is greater than the quantity of loanable funds supplied and the interest rate will fall.
C) supplied is greater than the quantity of loanable funds demanded and the interest rate will fall.
D) supplied is greater than the quantity of loanable funds demanded and the interest rate will rise.
Correct Answer:
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