If There Is Shortage of Loanable Funds, What Is Most

question 24

Multiple Choice

If there is shortage of loanable funds, what is most likely to happen?

• A) The supply for loanable funds shifts right and the demand shifts left.
• B) The supply for loanable funds shifts left and the demand shifts right.
• C) Neither curve shifts, but the quantity of loanable funds supplied increases and the quantity demanded decreases as the interest rate rises to equilibrium.
• D) Neither curve shifts, but the quantity of loanable funds supplied decreases and the quantity demanded increases as the interest rate falls to equilibrium.

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Definitions:

Quakers

A religious group formally known as the Religious Society of Friends, known for their commitment to peace, simplicity, integrity, and equality.

Shakers

A religious sect formally known as the United Society of Believers in Christ's Second Appearing, known for their communal living, celibacy, and simple lifestyle.

Sect

A relatively small group that has broken away from an established denomination within a religion.

Gender-Stereotyped

Referring to oversimplified and generalized beliefs about the characteristics, attributes, and behaviors of males or females.