A ceiling on interest rates is likely to result in a surplus in the loanable funds market.

Name: A ceiling on interest rates is likely to result in a surplus in the loanable funds market.
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Question

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A ceiling on interest rates would limit the maximum rate that lenders can charge, which may discourage lending and decrease the supply of loanable funds. This would result in a shortage, rather than a surplus, in the loanable funds market.

A Ceiling on Interest Rates Is Likely to Result in a Surplus