The Demand for Loanable Funds Increases While the Supply of Loanable

question 42

Multiple Choice

The demand for loanable funds increases while the supply of loanable funds remains constant.This would cause

• A) the equilibrium quantity of loanable funds to decrease and the equilibrium interest rate to increase.
• B) the equilibrium quantity of loanable funds to increase and the equilibrium interest rate to decrease.
• C) both the equilibrium quantity of loanable funds and the equilibrium interest rate to increase.
• D) the equilibrium interest rate to decrease,but the equilibrium quantity of loanable funds would remain unchanged.
• E) the equilibrium interest rate to increase,but the equilibrium quantity of loanable funds would remain unchanged.

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Definitions:

Browsers

Herbivorous animals that feed on leaves, soft shoots, or fruits of high-growing, woody plants rather than grasses.

Grazers

Herbivorous animals that feed primarily on grass and other low-lying vegetation.

Countershading

A coloration pattern in animals where the upper side is darker than the lower side, reducing visibility by counteracting the effects of light and shadow.

Predators

Organisms that hunt, kill, and consume other organisms for food.