If the Quantity of Loanable Funds Supplied Is Less Than

question 288

Multiple Choice

If the quantity of loanable funds supplied is less than the quantity demanded, then

• A)there is a shortage of loanable funds and the interest rate will fall.
• B)there is a shortage of loanable funds and the interest rate will rise.
• C)there is a surplus of loanable funds and the interest rate will fall.
• D)there is a surplus of loanable funds and the interest rate will rise.

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Definitions:

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus, famously demonstrated by Pavlov's dogs.

Salivate

The process of secreting saliva, especially in response to the presence of food as a part of the digestive process.

Stimulus Discrimination

The learned ability to distinguish between a conditioned stimulus and other stimuli that do not signal an unconditioned stimulus.

Pigeon

A common bird known for its ability to find its way home over long distances, often used in research on navigation and in studies related to behaviorism.