If the real interest rate is below the market equilibrium real interest rate, what change occurs in the market?

Question

Answer

Borrowers can't borrow all the funds they want, so the real interest rate rises.

Answer

Lenders can't find borrowers for all the available funds, so the real interest rate rises.

Answer

A surplus of loanable funds exists in the market.

Answer

Lenders can't find borrowers for all the available funds, so the real interest rate falls.

Answer

Borrowers find it easy to get the funds they want, so the real interest rate falls.

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