what model would you use, and what would be the impact on the interest rate?\nchoose 1 answer:\na the money…

what model would you use, and what would be the impact on the interest rate?\nchoose 1 answer:\na the money market; the real interest rate is not impacted\nb the loanable funds market; real interest rate decreases\nc the ad - as model; the real interest rate is not impacted\nd the money market; the real interest rate decreases\ne the loanable funds market; real interest rate increases

what model would you use, and what would be the impact on the interest rate?\nchoose 1 answer:\na the money market; the real interest rate is not impacted\nb the loanable funds market; real interest rate decreases\nc the ad - as model; the real interest rate is not impacted\nd the money market; the real interest rate decreases\ne the loanable funds market; real interest rate increases

Answer

Brief Explanations:

The loanable - funds market model is used to analyze the determination of the real interest rate. An increase in the supply of loanable funds in the loanable - funds market will decrease the real interest rate, and a decrease in supply will increase it. The money market focuses on the relationship between the quantity of money and the interest rate in the short - run, and the AD - AS model is mainly for analyzing output and price levels in the economy.

Answer:

E. The loanable funds market; real interest rate increases