-In the Above Figure, the Demand for Loanable Funds Curve

question 171

Multiple Choice

-In the above figure, the demand for loanable funds curve is drawn for the average expected profit. If the real interest rate is constant at 6 percent and and the expected profit rises, the amount of loanable funds demanded will be

• A) greater than $450 billion.
• B) $450 billion.
• C) between $300 billion and $450 billion.
• D) less than $450 billion.

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Definitions:

Actual Output

The real, quantifiable production achieved within a given time period, often compared against planned or potential output.

Labor Efficiency Variance

The difference between the actual labor hours worked and the expected labor hours, multiplied by the standard labor rate, indicating efficiency in labor use.

Labor Rate Variance

A metric that calculates the difference between the actual and expected cost of labor.

Labor Efficiency Variance

The difference between the actual labor hours used and the standard labor hours expected for the level of production achieved, indicating labor productivity.