Question #80276
5. If both the demand and supply of loanable funds in the market decrease, with the decrease in supply larger than the demand impact, then the real interest rate will ___ and investment will ___.
Expert's answer
Answer on Question #80276 -Economics - Microeconomics
If both the demand and supply of loanable funds in the market decrease, with the decrease in supply larger than the demand impact, then the real interest rate will ___ and investment will ___.
Answer
The real interest rate will increase and investment will decrease.
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