If There Is a Surplus of Loanable Funds, What Best

question 182

Multiple Choice

If there is a surplus of loanable funds, what best describes the difference?

• A) The quantity demanded is less than the quantity supplied, and the interest rate will rise.
• B) The quantity demanded is greater than the quantity supplied, and the interest rate will fall.
• C) The quantity demanded is less than the quantity supplied, and the excess is the net capital outflow
• D) The quantity demanded is less than the quantity supplied, and the shortage is the net capital inflow.

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Definitions:

Interstate Commerce

The exchange of goods, services, or money between parties in different states, governed by federal law in the United States.

Create A Monopoly

The practice or situation where a single company or entity exclusively controls a particular market, limiting competition and possibly leading to higher prices and less innovation.

Sherman Act

A foundational United States antitrust law aimed at maintaining fair competition in the marketplace by prohibiting monopolies, cartels, and anticompetitive practices.

Unreasonable Restraint

Restrictions or practices that excessively limit trade or competition beyond what is considered fair or legal.