Within the loanable funds framework, if the market interest rate exceeds the equilibrium interest rate, then the
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the volume of loanable funds demanded exceeds the volume of loanable funds supplied and interest rates will tend to fall.
the volume of loanable funds supplied exceeds the volume of loanable funds demanded and interest rates will tend to increase. the volume of loanable funds demanded exceeds the volume of loanable funds supplied and interest rates will tend to increase. the volume of loanable funds supplied exceeds the volume of loanable funds demanded and interest rates will tend to fall.
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