Which of the Following Could Explain a Decrease in the Equilibrium

question 108

Multiple Choice

Which of the following could explain a decrease in the equilibrium interest rate and in the equilibrium quantity of loanable funds?

• A)The demand for loanable funds shifted rightward.
• B)The demand for loanable funds shifted leftward.
• C)The supply of loanable funds shifted rightward.
• D)The supply of loanable funds shifted leftward.

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Definitions:

Income Distribution

This refers to the way money is allocated among individuals or groups in an economy, indicating how wages, salaries, and profits are divided.

Capital Contributions

Monetary or other assets provided by owners or shareholders to increase a company's equity.

Capital Balance

Capital balance refers to the amount of funds contributed by investors or owners, plus retained earnings or minus losses.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from revenues.