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:

Natural Fit

A situation or condition where an individual or object seamlessly matches or integrates with a particular environment or role without force.

Goal-Sharing

A strategy where organizational goals are communicated to employees, ensuring that everyone understands their role in achieving these objectives, often linked to performance and incentives.

Gain-Sharing Plans

Incentive plans that reward employees for contributing to the company's efficiency and productivity improvements by sharing the resulting financial gains.

Profit-Sharing Plans

An incentive plan in which employees receive a portion of the company's profits, typically allocated based on the company's earnings over a set period.