Multiple Choice
The following table lists some economic agents and their intentions. At present the interest rate is 5 percent.
-Refer to the table above.If there are no other people or companies in the market for loanable funds,which of the statements below must be true?
A) There is a shortage of savings, and for the market to clear the interest rate will decrease.
B) There is a shortage of investment, and for the market to clear the interest rate will decrease.
C) There is a shortage of savings, and for the market to clear the interest rate will increase.
Correct Answer:
Verified
Correct Answer:
Verified
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