If the Real Interest Rate Is Below the Equilibrium Real

question 138

Multiple Choice

If the real interest rate is below the equilibrium real interest rate, then the quantity of loanable funds supplied is

• A) greater than the quantity of loanable funds demanded, and the real interest rate will fall.
• B) less than the quantity of loanable funds demanded, and the real interest rate will rise.
• C) greater than the quantity of loanable funds demanded, and the real interest rate will rise.
• D) less than the quantity of loanable funds demanded, and the real interest rate will fall.

---

Definitions:

Sourcing Strategy

The approach an organization takes to manage procurement processes and supplier relationships to optimize cost, quality, and supply reliability.

Supplier Selection Criteria

The standards or benchmarks that companies use to evaluate and choose among potential suppliers.

TQM

Total Quality Management; a management approach to long-term success through customer satisfaction, focusing on continuous improvement of organizational processes.

ISO 9000

A set of international standards for quality management and quality assurance designed to help companies ensure they meet customer and other stakeholder needs.