On Any Given Day If the Market Interest Rate Is

question 40

Multiple Choice

On any given day if the market interest rate is above the equilibrium interest rate level,

• A) the Fed will declare a monetary policy.
• B) there will be a shortage of loanable funds and interest rates will increase.
• C) there will be a surplus of loanable funds at that rate and rates will decline to the equilibrium rate.
• D) there will be a shortage of loanable funds at that rate and rates will increase to the equilibrium rate.

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Definitions:

Personal Interests

involve the hobbies, preferences, or passions of an individual, which can influence their choices and behavior.

Personal Costs

Expenses that directly affect an individual, often considered in decisions involving personal finance or effort.

Benefits

Advantages or positive outcomes derived from a particular action or policy.

Free Good

A good that is available without any cost, typically because it is abundant or not owned by any one entity.