The figure above shows the loanable funds market. If the real interest rate is 10 percent, then
A) there is a shortage in the loanable funds market.
B) the government must intervene in order to prevent a credit crisis.
C) the interest rate must increase.
D) savers will exit the market because of the high opportunity cost of saving.
E) there is a surplus in the loanable funds market.
E
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Refer to the figure above. What is the producer surplus before Barylia opens up to free trade?
A) $125 B) $250 C) $400 D) $325
How do you think the theory of contestable markets has been used as a means of arguing for weaker enforcement of antitrust laws? Explain
What will be an ideal response?
The labor force of a country was 50 million last year. The labor-force participation rate was 4% last year, but it increased to 6% in the current year. This implies the labor force in the current year is _____
a. 70 million b. 75 million c. 100 million d. 35 million
____________________ - a perfectly competitive price system will bring about an economically efficient allocation of resources
Fill in the blank(s) with the appropriate word(s).