If the quantity of loanable funds supplied exceeds the quantity of loanable funds demanded, there is a Group of answer choices surplus and the interest rate is above the equilibrium level. surplus and the interest rate is below the equilibrium level.

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26-07-2022
Business

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If the quantity of loanable funds supplied exceeds the quantity of loanable funds demanded, there is a Group of answer choices surplus and the interest rate is above the equilibrium level. surplus and the interest rate is below the equilibrium level.

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ewomazinoade ewomazinoade · Answer 1 · 2022-08-01T17:19:35+02:00

If the quantity of loanable funds supplied exceeds the quantity of loanable funds demanded, there is a surplus and the interest rate is above the equilibrium level.

What does it mean when there is a surplus of loanable funds?

If the quantity of loanable funds supplied exceeds the quantity of loanable funds demanded, it means that there are loanable funds available in the market and no one wants to borrow them. Interest rate above the equilibrium level is a reason for this situation.

Interest rate is the rate the lender requests the borrower to pay for use of her funds. When there is an excess supply of loanable funds, interest rate would decline unit the equilibrium interest rate is reached. At equilibrium, the supply of loanable funds is equal to the demand for loanable funds.

To learn more about interest rate, please check: https://brainly.com/question/14935026

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