The Demand and Supply of Capital Are Given by Q^D

question 18

Multiple Choice

The demand and supply of capital are given by Q^D = 200 - 60r and Q^S = 20r - 40, where Q is the quantity of capital in millions of dollars and r is the interest rate measured as a percentage. What is the equilibrium interest rate?

• A) 5%
• B) 2%
• C) 8%
• D) 3%

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Definitions:

Social-Cognitive Theorists

Researchers who study how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Change In Knowledge

The process or result of acquiring new information or understanding, altering one's perception or understanding of a topic.

Conditioned Response

A learned reaction to a conditioned stimulus that occurs because of previous conditioning, typically seen in classical conditioning experiments.

Reflexive Response

An automatic, involuntary reaction to a stimulus, not requiring conscious thought.