If There Is a Shortage of Loanable Funds,then

question 126

Multiple Choice

If there is a shortage of loanable funds,then

• A)the demand for loanable funds will shift right so the real interest rate rises.
• B)the supply of loanable funds will shift left so the real interest rate falls.
• C)there will be no shifts of the curves,but the real interest rate rises.
• D)there will be no shifts of the curves,but the real interest rate falls.

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Definitions:

Revenues

The total income generated by a company or entity from its business activities, such as sales of goods or services.

Interest Rates

The cost of borrowing money or the return for investing money, usually expressed as a percentage.

Cement Truck

A vehicle equipped with a revolving drum used for mixing cement with water, sand, and gravel to make concrete and transporting it to construction sites.

Utility Function

A mathematical representation of how consumers rank different bundles of goods according to the level of satisfaction or utility those bundles provide.