The Equilibrium Interest Rate

question 28

Multiple Choice

The equilibrium interest rate

• A)equates the aggregate demand for loanable funds with the aggregate supply of loanable funds.
• B)equates the elasticity of the aggregate demand for and supply of loanable funds.
• C)decreases as the aggregate supply of loanable funds decreases.
• D)increases as the aggregate demand for loanable funds decreases.

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Definitions:

Basilar Artery

A major blood vessel located at the base of the brain, supplying blood to the brainstem and posterior part of the brain.

Subclavian Artery

A major artery that supplies blood to the arms and, indirectly, to the chest wall and shoulders.

Vertebral Artery

A major artery that supplies blood to the posterior part of the brain, passing through the transverse foramina of the cervical vertebrae.

Great Saphenous Vein

The longest vein in the body, running along the length of the lower leg and thigh, and often used in coronary artery bypass surgery.