Who demands loanable funds?
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If there is a shortage of loanable funds, then
a. the quantity of loanable funds demanded is greater than the quantity of loanable funds supplied and the interest rate is above equilibrium.
b. the quantity of loanable funds demanded is greater than the quantity of loanable funds supplied and the interest rate is below equilibrium.
c. the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded and the interest rate is above equilibrium.
d. the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded and the interest rate is below equilibrium.
If there is a surplus of loanable funds, then
a. the quantity of loanable funds demanded is greater than the quantity of loanable funds supplied, and the interest rate is above equilibrium.
b. the quantity of loanable funds demanded is greater than the quantity of loanable funds supplied, and the interest rate is below equilibrium.
c. the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded, and the interest rate is above equilibrium.
d. the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded, and the interest rate is below equilibrium.
The source of the supply of loanable funds
a. is saving and the source of demand for loanable funds is investment.
b. is investment and the source of demand for loanable funds is saving.
c. and the demand for loanable funds is saving.
d. and the demand for loanable funds is investment.