If There Is Surplus of Loanable Funds, What Is Most

question 186

Multiple Choice

If there is surplus 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:

Ideal

A conception of something in its most perfect form or a standard of perfection or excellence.

Love

A complex set of emotions and attitudes associated with strong feelings of affection, warmth, and respect for another person.

Nurturance

The provision of care and affection, typically aimed at supporting the development and well-being of another.

Emotional Support

Assistance provided through empathy, concern, and encouragement to help an individual cope with emotional distress or challenges.