Use the Following to Answer Questions

question 331

Multiple Choice

Use the following to answer questions:
-(Figure: Loanable Funds Market) Use Figure: Loanable Funds Market. The equilibrium interest rate and total quantity of lending are:

• A) 8% and $2 trillion.
• B) 2% and $5 trillion.
• C) 10% and $1 trillion.
• D) 6% and $3 trillion.

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Definitions:

Sales Discount

A reduction in the price of goods or services offered by a seller to a buyer, often to incentivize the purchase or prompt payment.

Merchandise

Goods or products that are bought and sold in business transactions.

Discount Period

The time frame during which a discount is available or applicable, often used in the context of notes payable or receivable.