Which Statement Describes When Dynamic Equilibrium Occurs

question 17

Multiple Choice

Which statement describes when dynamic equilibrium occurs?

• A) Only the reverse reaction occurs.
• B) Only the forward reaction occurs.
• C) The rate of the forward and reverse reactions is equal.
• D) The rate of the forward and the reverse reactions is zero.

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Definitions:

Government Deficit

A situation where a government's expenditures exceed its revenues.

Loanable Funds

A term in economics that refers to all the money available for borrowing in the financial markets, determined by the level of savings vs. the demand for borrowing.

NPV

Net Present Value; a calculation used to assess the value of an investment, taking into account the present value of its cash inflow and outflow over time.

Interest Rates

The percentage at which interest is paid by borrowers for the use of money they borrow from a lender.