If the Quantity of Loanable Funds Supplied Is Greater Than

question 16

Multiple Choice

If the quantity of loanable funds supplied is greater than the quantity demanded, which statement best describes the difference?

• A) There is a deficit of loanable funds and the excess is net capital outflow.
• B) There is a deficit of loanable funds and the shortage is net capital outflow.
• C) There is a surplus of loanable funds and the excess is net capital outflow.
• D) There is a surplus of loanable funds, and the shortage is net capital outflow.

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Definitions:

Scientific Study

The systematic investigation of scientific theories and hypotheses through careful experimentation, observation, and analysis leading to new knowledge or conclusions.

Crystallized Intelligence

Aspects of intelligence involving verbal ability and accumulated knowledge, which tend to increase over the life span.

Fluid Intelligence

Aspects of intelligence involving abstract reasoning and mental flexibility, which peak in the early 20s and decline slowly as people age.

Cognitive Dissonance

A psychological phenomenon where a person experiences discomfort or distress due to holding conflicting beliefs, attitudes, or behaviors simultaneously.