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If the Quantity of Loanable Funds Supplied Is Greater Than

Question 24

Multiple Choice

If the quantity of loanable funds supplied is greater than the quantity demanded, which of the following best describes the consequences?


A) There is a shortage of loanable funds, and the interest rate will fall.
B) There is a shortage of loanable funds, and the interest rate will rise.
C) There is a surplus of loanable funds, and the interest rate will fall.
D) There is a surplus of loanable funds, and the interest rate will rise.

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