A Ceiling on Interest Rates Results In

question 236

Multiple Choice

A ceiling on interest rates results in:

• A) a surplus of loanable funds.
• B) a shortage of loanable funds.
• C) a decrease in the demand for borrowing.
• D) an increase in the supply of loanable funds.

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Definitions:

Systematic Desensitization

A behavioral technique used to help individuals overcome phobias and anxiety disorders through gradual exposure to the feared object or situation paired with relaxation exercises.

Realism

A philosophy that emphasizes the representation of the world in a truthful, objective manner, without idealization.

Continuum

A continuous sequence, range, or whole extent of items, elements, values, or conditions, where no part is fundamentally different from adjacent parts, although the extremes are quite distinct.

Reciprocal Inhibition

A psychological principle where the induction of a response incompatible with anxiety automatically leads to the reduction of anxiety.