An Increase in the Interest Rate,other Things Constant,will

question 41

Multiple Choice

An increase in the interest rate,other things constant,will:

• A)shift the supply of loanable funds curve to the left.
• B)shift the supply of loanable funds curve to the right.
• C)increase the quantity of loanable funds supplied.
• D)shift the demand for loanable funds curve to the left.
• E)increase the quantity of loanable funds demanded.

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Definitions:

Privately Owned

Refers to properties, businesses, or assets that are owned by individuals or private companies and not by the state or public entities.

Price System

A mechanism through which prices adjust to balance supply and demand for goods and services in an economy.

Centralized Planning

A system of economy where all choices related to the creation and allocation of goods and services are made by a central governmental body.

Competitive Markets

Markets where many buyers and sellers trade goods and services under conditions of few restrictions, leading to the best prices for both parties.