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V125BC [204]
2 years ago
7

If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied______________.

Business
1 answer:
Ivenika [448]2 years ago
7 0

Answer:

d. there is a shortage and the interest rate is below the equilibrium level.

Explanation:

If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied, there is less money available for loans than the required, which characterizes a shortage. Higher interest rates decrease the demand while lower rates increase demand; if demand is higher than supply, the interest rate is lower than the equilibrium rate.

Therefore, there is a shortage and the interest rate is below the equilibrium level.

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