If the Real Interest Rate Is Above the Equilibrium Real

question 188

Multiple Choice

If the real interest rate is above the equilibrium real interest rate,

• A) lenders will be unable to find borrowers willing to borrow all of the available funds and the real interest rate will rise.
• B) lenders will be unable to find borrowers willing to borrow all of the available funds and the real interest rate will fall.
• C) borrowers will be unable to borrow all of the funds they want to borrow and the real interest rate will rise.
• D) borrowers will be unable to borrow all of the funds they want to borrow and the real interest rate will fall.

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Definitions:

Low Cost

A strategy or pricing model that focuses on maintaining expenses as minimal as possible while still achieving the desired level of quality or service.

Instant Availability

The immediate accessibility of resources or services, often used in context with banking and funding.

Process Cost Accounting

An accounting methodology used for homogenous products that accumulates costs for each process or department and assigns them to units of output.

Factory Overhead

All indirect costs associated with manufacturing, encompassing the expenses incurred in the process of producing goods besides direct materials and direct labor.