Question : 81) In the loanable funds market, if the real interest : 1227789

81) In the loanable funds market, if the real interest rate is higher than the equilibrium real interest rate,

A) there is a shortage of loanable funds.

B) there is a surplus of loanable funds.

C) there is a surplus of investment.

D) the demand for loanable funds curve shifts rightward to restore the equilibrium.

E) the demand for loanable funds curve shifts leftward to restore the equilibrium.

82) At the current interest rate, the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded. Therefore

A) the real interest rate is below the equilibrium level.

B) the real interest rate is above the equilibrium level.

C) equilibrium will not be achieved until something shifts the supply of loanable funds curve leftward.

D) equilibrium will not be achieved until something shifts the demand for loanable funds curve rightward.

E) equilibrium will not be achieved until something shifts the supply of loanable funds curve rightward.

83) When the real interest rate ________ the equilibrium real interest rate, there is a ________ of loanable funds and the real interest rate ________.

A) exceeds; surplus ; falls

B) is less than; surplus; rises

C) exceeds; shortage; rises

D) is less than; shortage; falls

E) exceeds; surplus; rises

84) The figure above shows the loanable funds market. The equilibrium real interest rate is ________ and the equilibrium quantity of loanable funds is ________.

A) 6 percent; $2.0 trillion

B) 4 percent; $2.5 trillion

C) 8 percent; $1.5 trillion

D) 0 percent; $3.5 trillion

E) 4 percent; $1.5 trillion

85) The figure above shows the loanable funds market. If the real interest rate is 2 percent, then there

A) will be government intervention in the market to make sure there is no credit crisis.

B) will be a leftward shift in the demand for loanable funds curve.

C) is a surplus in the loanable funds market.

D) is a shortage in the loanable funds market

E) demand for loanable funds curve will shift rightward.

86) The figure above shows the loanable funds market. If the real interest rate is 10 percent, then

A) there is a shortage in the loanable funds market.

B) there is a surplus in the loanable funds market.

C) the interest rate must increase.

D) the government must intervene in order to prevent a credit crisis.

E) savers will exit the market because of the high opportunity cost of saving.

87) The figure above shows the loanable funds market. The equilibrium real interest rate is ________ percent and the equilibrium quantity of loanable funds is ________.

A) 4; $1.8 trillion

B) 6; $1.6 trillion

C) 8; $1.4 trillion

D) 4; $1.4 trillion

E) 8; $1.8 trillion

88) The figure above shows the loanable funds market. At an interest rate of

A) 8 percent there is a surplus of loanable funds.

B) 8 percent the quantity demanded of loanable funds exceeds the quantity supplied.

C) 4 percent the quantity supplied of loanable funds equals $18 trillion.

D) 6 percent the quantity demanded of loanable funds equals $14 trillion.

E) 4 percent there is a surplus of loanable funds.

89) The figure above shows the loanable funds market. At an interest rate of

A) 4 percent there is a surplus of loanable funds.

B) 4 percent there is a shortage of loanable funds.

C) 8 percent the quantity of loanable funds supplied is $14 trillion.

D) 8 percent the quantity demanded of loanable funds is $18 trillion.

E) 6 percent savers will exit the market because the reward to saving is too low.

90) Suppose that there is an increase in disposable income and simultaneously an increase in the expected profitability of investment. As a result, the equilibrium real interest rate ________ and the equilibrium quantity of loanable funds ________.

A) rises; increases

B) falls; increases

C) remains unchanged; increases

D) might rise, fall, or remain unchanged; increases

E) might rise, fall, or remain unchanged; decreases