If There Is a Surplus of Loanable Funds, Which of the Following

question 43

Multiple Choice

If there is a surplus of loanable funds, which of the following best describes the consequences?

• A)The quantity demanded is greater than the quantity supplied, and the interest rate will rise.
• B)The quantity demanded is greater than the quantity supplied, and the interest rate will fall
• C)The quantity demanded is less than the quantity supplied, and the interest rate will rise.
• D)The quantity demanded is less than the quantity supplied, and the interest rate will fall.

---

Definitions:

Northern Europe

A geographical and cultural region in the northern part of Europe, which includes countries such as Denmark, Finland, Iceland, Norway, and Sweden.

Italy

A country in Southern Europe, known for its rich history, art, architecture, and significant contribution to the cultural and historical development of Europe.

Groin Vaults

Architectural elements formed by the intersection at right angles of two barrel vaults, often used in Romanesque and Gothic church architecture to support roofs.

Ashlar Blocks

Smooth, square or rectangular stone blocks used in construction, characterized by their fine joints and uniform appearance.