Figure 32-1
-Refer to Figure 32-1. In the figure shown, if the real interest rate is 4 percent, there will be pressure for which of the following changes?
A)for the real interest rate to rise
B)for the demand for loanable funds curve to shift right
C)for the supply for loanable funds curve to shift left
D)for the real interest rate to fall

Question

Figure 32-1 
-Refer to Figure 32-1. In the figure shown, if the real interest rate is 4 percent, there will be pressure for which of the following changes?
A)for the real interest rate to rise 
B)for the demand for loanable funds curve to shift right 
C)for the supply for loanable funds curve to shift left 
D)for the real interest rate to fall

Quizplus · Accepted Answer

If the real interest rate is below the equilibrium rate, there will be excess demand for loanable funds, causing upward pressure on the real interest rate.

Figure 32-1 -Refer to Figure 32-1. in the Figure Shown, If the Shown