Respuesta :
False, if the real interest rate were above the equilibrium rate, there would be a shortage of loanable funds.
What is Consumer Equilibrium?
- It is assumed that when consumers choose how much of a given commodity or service to buy, their goal is to maximize total utility.
- The customer must contend with a number of restrictions in order to maximize total utility, the two most significant of which are their income and the costs of the items and services they want to purchase.
- The consumer's problem is the attempt made by the consumer to maximize total utility while taking these restrictions into account.
- Consumer equilibrium is the answer to the consumer's issue, which involves choices on how much the consumer will consume of a variety of goods and services.
Hence, if the real interest rate were above the equilibrium rate, there would be a shortage of loanable funds it is false.
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