If the demand for loanable funds shifts left, then the real interest rate Group of answer choices and the equilibrium quantity of loanable funds both fall. falls and the equilibrium quantity of loanable funds rises. rises and the equilibrium quantity of loanable funds falls. and the equilibrium quantity of loanable funds both rise.
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This decrease in demand for loanable funds is typically due to factors such as a decrease in business investment or consumer spending. Show more…
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If there is a shortage of loanable funds, then a. the supply for loanable funds shifts right and the demand shifts left. b. the supply for loanable funds shifts left and the demand shifts right. c. neither curve shifts, but the quantity of loanable funds supplied increases and the quantity demanded decreases as the interest rate rises to equilibrium. d. neither curve shifts, but the quantity of loanable funds supplied decreases and the quantity demanded increases as the interest rate falls to equilibrium.
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If the quantity of loanable funds supplied is greater than the quantity demanded, then there is a a. surplus of loanable funds and the interest rate will rise. b. surplus of loanable funds and the interest rate will fall. c. shortage of loanable funds and the interest rate will fall. d. shortage of loanable funds and the interest rate will rise
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If there is a surplus of loanable funds, then a. the quantity of loanable funds demanded is greater than the quantity of loanable funds supplied, and the interest rate is above equilibrium. b. the quantity of loanable funds demanded is greater than the quantity of loanable funds supplied, and the interest rate is below equilibrium. c. the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded, and the interest rate is above equilibrium. d. the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded, and the interest rate is below equilibrium.
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