Which of the Following Would Necessarily Increase the Equilibrium Interest

question 173

Multiple Choice

Which of the following would necessarily increase the equilibrium interest rate?

• A)The demand for and the supply of loanable funds shift right.
• B)The demand for and the supply of loanable funds shift left.
• C)The demand for loanable funds shifts right and the supply of loanable funds shifts left.
• D)The demand for loanable funds shifts left and the supply of loanable funds shifts right.

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Definitions:

Yield Management Pricing

A pricing strategy used in industries with perishable goods (like airlines, hotels) that adjusts prices based on fluctuating demand to maximize revenue.

Seasonal Demand

Fluctuations in the market demand for certain products or services that occur at specific times of the year.

Yield Management Pricing

A pricing strategy that adjusts prices based on changes in supply and demand, commonly used in the airline and hotel industries.

Skimming Pricing

A pricing strategy where a product is initially sold at a high price to target customers who are less price-sensitive, before gradually lowering the price.