If the quantity of loanable funds supplied exceeds the quantity of loanable funds demanded, there is a _______ of loanable funds and the interest rate is _____ the equilibrium level. surplus : below shortage : above shortage : below surplus : above
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The loanable funds market is where savers supply funds for borrowers. The interest rate is the price of borrowing these funds. Show more…
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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.
Andrew D.
If there is a surplus of loanable funds, then: (i) the quantity demanded is greater than the quantity supplied and the interest rate will rise. (ii) the quantity demanded is greater than the quantity supplied and the interest rate will fall. (iii) the quantity supplied is greater than the quantity demanded and the interest rate will rise. (iv) the quantity supplied is greater than the quantity demanded and the interest rate will fall.
Rachel G.
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