Author Question: If the real interest rate is below equilibrium, which of the following is likely to occur? a. ... (Read 11 times)

DelorasTo · **on:** Jun 30, 2018

If the real interest rate is below equilibrium, which of the following is likely to occur?
a. Lenders will raise their interest rates which will encourage saving.
b. Lenders will raise their interest rates which will encourage borrowing.
c. Lenders will lower their interest rates which will encourage saving.
d. Lenders will lower their interest rates which will encourage borrowing.

Question 2

A rightward shift of a market supply curve might be caused by:
a. the entry of new firms in the industry.
b. an increase in the wages of labor employed in the industry.
c. an increase in the price of the final product.
d. a decrease in the income of consumers.
e. an increase in the supply of a substitute good.