If There Is a Surplus of Loanable Funds,then

question 80

Multiple Choice

If there is a surplus of loanable funds,then

• A)the quantity of loanable funds demanded is greater than the quantity of loanable funds supplied and the interest rate is above equilibrium.
• B)the quantity of loanable funds demanded is greater than the quantity of loanable funds supplied and the interest rate is below equilibrium.
• C)the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded and the interest rate is above equilibrium.
• D)the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded and the interest rate is below equilibrium.

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Definitions:

Investment

Allocation of resources, typically money, with the expectation of generating an income or profit.

Volatile

Characteristic of a substance or entity that is likely to change rapidly and unpredictably, especially for the worse.

Historical Returns

The past financial performance of an investment, used to evaluate and compare the potential for future returns over time, drawing from historical data.

Semi-Strong Form

The semi-strong form of market efficiency hypothesizes that stock prices incorporate all publicly available information, suggesting that investors cannot earn excess returns through fundamental analysis.