If the real interest rate is lower than the equilibrium real interest rate:
A) the quantity of credit demanded equals the quantity of credit supplied.
B) the quantity of credit demanded falls short of the quantity of credit supplied.
C) the quantity of credit supplied falls short of the quantity of credit demanded.
D) interest rates tend to fall further.
C
You might also like to view...
If the coupon-rate of a particular bond increases:
a. the supply of the bond increases. b. the price of the bond declines. c. the demand for the bond declines. d. the supply of the bond decreases. e. the demand for the bond increases.
If two nations engage in trade, they will always share equally the gains achieved through specialization
Indicate whether the statement is true or false
Refer to Table 9-3. If the required reserve ratio is 10%, what is the value of the bank's required reserves?
A) $25 million B) $40 million C) $60 million D) $75 million
Which of the following is NOT a measure of the general level of prices?
A. GDP Deflator B. Consumer Price Index C. Producer Price Index D. Personal Sales Deflator Index