Which of These Would Cause the Equilibrium Interest Rate to Rise

question 174

Multiple Choice

Which of these would cause the equilibrium interest rate to rise and the equilibrium quantity in the loanable funds market to fall?

• A) an increase in the average income in the population
• B) expectations of greater job security
• C) increases in the demand for the products of several firms
• D) an advance in technology

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Definitions:

Inter-Relationship of Accounts

The connection and impact that different financial accounts have on each other within the accounting system.

Operations

The day-to-day activities involved in running a business that are necessary for producing and delivering its goods and/or services to the market.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that guide the preparation of financial statements globally.