If the real interest rate is greater than the equilibrium real interest rate:
A) interest rates tend to rise further.
B) the quantity of credit supplied falls short of the quantity of credit demanded.
C) the quantity of credit demanded falls short of the quantity of credit supplied.
D) the quantity of credit demanded equals the quantity of credit supplied.
C
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. On average over all goods, it has been found that as people become wealthier, expenditures for higher quality grow more rapidly than expenditures for increased quantity. 2. The cross elasticity between California and Florida oranges is likely to be negative because they are substitutes for one another. 3. If the cross price elasticity of demand is negative, then the two goods under consideration must be complements. 4. If the cross-price elasticity for oranges with respect to apples is 1.2 and the price of apples increase by 5%, then we can expect the quantity demanded of oranges to decrease by 6%.
Monopolistically competitive firms have an incentive to:
A. create products that are easily substituted for the competition's products. B. create products that have a unique feature that makes it difficult to substitute. C. create products that are exactly like the competitor's products. D. None of these statements is true.
Suppose the quantity demanded is 1,000 million bushels of peaches per year when the price is $3 per bushel and 1,500 million bushels when the price is $1 per bushel. The price elasticity of demand in this range of the demand curve is:
a. elastic. b. inelastic. c. unitary elastic. d. infinitely elastic.
An increase in the education level inside a nation would cause the:
A. aggregate demand curve to shift to the right. B. long-run aggregate supply curve to shift to the right. C. long-run aggregate supply curve to shift to the left. D. short-run aggregate supply curve to shift to the left.