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Suppose the current real interest rate is 4 percent and the equilibrium real interest rate is 3 percent. Choose the correct statement.


A) The supply of loanable funds increases.
B) There is a surplus of loanable funds.
C) There is a shortage of loanable funds.
D) There is neither a shortage nor surplus of loanable funds.
E) The demand for loanable funds decreases.

F) A) and E)
G) B) and D)

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