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AP Macroeconomics Mkt 4 D Explain Using Graphs As Appropriate How Real Interest Rates Adjust to Restore Equilibrium in the Loanable Funds Market Questions

Use excess demand or excess supply in the loanable-funds market to determine how the real interest rate moves back toward equilibrium.

Syllabus
Effective Fall 2026
Course
AP Macroeconomics

Exam points

  • explain why excess demand raises the real interest rate while excess supply lowers it toward equilibrium

AP Macroeconomics Mkt 4 D Explain Using Graphs As Appropriate How Real Interest Rates Adjust to Restore Equilibrium in the Loanable Funds Market Questions question 1

[Maximum number: 1]

． If the current real interest rate in the loanable funds market is greater than the equilibrium real interest rate，which of the following is most likely to occur？

A

（A） The real interest rate will decrease，causing borrowers to decrease the quantity demanded of loanable funds．

B

（B） The real interest rate will decrease，causing savers to increase the quantity supplied of loanable funds．

C

（C） The real interest rate will decrease，causing savers to decrease the quantity supplied of loanable funds．

D

（D） The real interest rate will increase，causing savers to increase the quantity supplied of loanable funds．

E

（E） The real interest rate will increase，causing borrowers to increase the quantity demanded of loanable funds．

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