In the Classical Model,if the Amount Households Wish to Save

question 185

Multiple Choice

In the classical model,if the amount households wish to save exceeds the sum of the amount businesses wish to invest plus the government's budget deficit,the loanable funds market

• A) will be in disequilibrium,but this does not prevent equilibrium in the total economy
• B) will be in disequilibrium,and we would expect the supply of funds to decrease
• C) will be in disequilibrium,and we would expect the interest rate to rise
• D) will be in disequilibrium,and we would expect the interest rate to fall
• E) may be in equilibrium,because unplanned inventory changes have not been included

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Definitions:

Carboxylic Acids

Organic compounds characterized by the presence of a carbonyl group (C=O) bonded to a hydroxyl group (-OH).

Amino Acids

The building blocks of proteins, consisting of an amino group, a carboxylic acid group, and a unique side chain.

Hydrophobic

Describes molecules or substances that repel water or do not mix well with water, often due to the lack of polar groups.

Melting Points

The point at which a solid turns into a liquid when exposed to atmospheric pressure.