If the Real Interest Rate Is Below the Equilibrium Real

question 191

Multiple Choice

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

• A) lenders will be unable to find borrowers willing to borrow all of the available funds and the supply of loanable funds curve will shift leftward.
• B) borrowers will be unable to borrow all of the funds they want to borrow and the demand for loanable funds curve will shift leftward.
• C) borrowers will be unable to borrow all of the funds they want to borrow and the demand for loanable funds curve will shift rightward.
• D) a shortage of of loanable funds will cause the real interest rate to rise.

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Definitions:

Dissociated Partner

A term used in business partnerships to refer to a member who has ceased their association with the partnership, affecting their rights and responsibilities towards the partnership.

Novation

A legal process by which an old contract is replaced by a new agreement, transferring rights and obligations to a different party.

Partnership Obligations

Partnership obligations are duties and responsibilities that partners in a business partnership are required to fulfill, including financial contributions, management duties, and adherence to partnership agreements.

Statement of Dissociation

A formal declaration made by a partner indicating their intention to leave a partnership.