Everything else remaining unchanged, what is likely to happen to the equilibrium real interest rate and quantity of credit if the credit demand curve shifts to the right?

A) Both equilibrium rate of interest and quantity of credit will decrease.
B) The equilibrium rate of interest will decrease and the quantity of credit will increase.
C) Both equilibrium rate of interest and quantity of credit will increase.
D) The equilibrium rate of interest will increase and the quantity of credit will decrease.


C

Economics

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